F
move too fast lest the economio stability of Hong Kong should be put at peril: for as a Territory that lives by ita exporta, it Aapenda on it” competitiveness to survive.
T.
Another major problem for us over our relationg with Hong Kong is that major conflicts onn eriss between British interente end thong of liong Kong. This has recently been mont Aramatically illustrated over the enge of textile exports from Hong Kong to the REC. Textiles accomt for about half of Hong Kong's exports, and the EEC is the Territory's largent market. It is, therefore, vital that they should maintain the nacoma to the EBC that they have enjoyed for the past four yearS imder the GATT Multi-Fibre Arragements which expired in Tagember 1977. They, therefore, locked to Britain to mupport their interents in the negotiation of a new agroomont.
But the UK Textile industry han muffered considerably from the competition from low cost imports during the currency of the MFA) and among EEC countries, we have as mich interest ea mny in plecing restrainta on any further increase in low price irports. In the end, we were able to parmande Hong Kong to nocaptɛen agreement which still qursatoes them a market for n. censiderable volume of their textiles, though at levels below their 1976 quots. This was only achieved after very bitter negotiations in the course of which we made ourselves unpopular with both our 880 partners and with Hong Kong.