362)
Mr Cortazk
COVERING CONFIDENTIAL
HONG KONG/EEC TEXTILES
1.
#KK 121/6/6/1
Jelg
"P.A. No 75.9k
اة
You will wish to see the attached study by Mr Hull of the Economists on the extreme effects of the best and worst results of the renegotiation of the Textiles Agreement with the EEC. You will also wish to see Mr Thompson's commentary.
2.
All the indications are that Hong Kong will be dragged reluctantly to signing a bilateral agreement with the Community and that paragraphs 5 and 6 of Mr Hull's memorandum will apply. I do not myself agree that the unemployment caused by
considerable reduction in the textile quotas has already occurred.
I agree with Mr Thompson that it is likely that many
manufacturers are still keeping some spare labour in hand which they could not do if there were a continuing depreciation in the textiles industry.
J A B Stewart
Hong Kong & General Dept
24 November 1977
Thank
you
COVERING CONFIDENTIAL
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