4

reduce our quotas mention that Hong Kong textiles had been under

restrictions for many years and that the "flood of imports" came

from elsewhere. Nor did Mr. Tran nor anyone else in the Community

mention that the redistribution of our quotas by the Community to

others was at no cost to the Community and at considerable cost to

Hong Kong. When we pointed these things out to him, he expressed

sympathy and understanding.

But the Community's proposals remained basically unchanged.

We naturally saw good reason to explain our fears about

and the possible consequences of these proposals privately to the

British Government and to the Community, in the Textiles Committee

in Geneva and publicly through the media. Indeed, so serious were

these developments that as you know the Governor went to London

himself in September to express our deep concern. The textile and

clothing industries themselves sent a delegation headed by Mr. Francis

Tien, a Legislative Councillor and leader of local garment manufacturers,

to see British Ministers.

Despite all our efforts, the EEC's negotiating mandate,

which was not finally agreed amongst the Member States until after

we had arrived in Brussels in October, was a highly restrictive set

of instructions to the Community's negotiators to secure "agreement"

(I must put that word in quotes) to secure agreement to, or to

impose, restrictions on the Community's textiles trade with developing

countries at levels which generally bore no discernible relation to

the provisions of the MFA and which were not justified by any

objective evidence that the imports of the products concerned were

actually causing market disruption. There was for instance a lot of

talk about how half-a-million jobs in textiles had been lost but that

the loss of these jobs was actually attributable to those imports

has never been proved.

/It

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