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"When the MFA came into force in 1974, we were glad to note
that one of its basic objectives was to achieve the expansion
of trade, the reduction of barriers to such trade and the pro-
gressive liberalisation of world trade in textile products'.
But instead things took a turn for the worse, as far as the UK
was concerned. It is now history that when the present HK/EEC
Textiles Agreement was concluded in 1975 we had to accept annual
growth rates for the UK market in seven restraint items at one
half of one per cent only and for the UK market as a whole only
something around two per cent.
"Against such a history, and these extremely low growth
rates, it is the Hong Kong industry's firm belief that any
difficulties which the UK industry may have experienced and
may be undergoing cannot be attributed to Hong Kong. And in
this respect we have noted recently the increasingly successful
performance of major UK textiles firms at a time when our own
exports to this country have been in sharp decline. In spite
of this, however, as far as we are aware it is the UK Govern-
ment's stated policy to seek modifications to the MFA which,
if adopted, would have serious consequences damaging to Hong
Kong's interests. Our concern became even greater when we
learned that some of these policies had gained wide support
within the EEC and might in fact be adopted to Hong Kong's
greater detriment.
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