cannot measure the benefits to the housewife' of having a wider
choice and lower prices from attractive goods arriving from
overseas.
7 And yet despite all the dangers international trade has
been remarkably resilient. Even in the dark days of 1975 it
in real terms fell by only 3 per cent a far cry from the
60 per cent fall in the slump years after 1929. More recently, in 1977 and 1978, it has risen by 41⁄2 per cent and 6 per cent. There are many restrictive arrangements, on textiles and other products. But I see from a recent GATT"estimate that the proportion of industrial trade subject to various restrictive devices is still only some 10 per cent. I agree that this
does not bring much comfort to Hong Kong where textiles remain your largest industry But it is heartening that, in the middle
of the difficulties and dangers that surround us, it has been.
possible to bring the GATT MTNs to a successful conclusion.
8 I said two years ago that it was not too late to save the
liberal trading system, but that the omens are bad. I stand
by the first half of this remark. The second I would now amend
to say that, if we all keep our heads, if we all continue to show restraint and pragmatism - I emphasise pragmatism without, I should add, too much hypocrisy
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the omens are good.
9 Well, what have been the recent developments in UK trade
policy? The first thing that I must mention is perhaps the
most radical and important change in the general environment in which trade has been conducted for very many years. The Government has abolished Exchange Control. In the past few months it has effectively made us among the most open trading
nations in the world. I doubt whether the combination of total
freedom of capital movements, coupled with free trade with the other EEC countries and with relatively low tariffs against the
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