That
departures" not been accepted. But you were prepared to be realists and to accept a less than ideal arrangement for
yourselves in return for the security which it offered.
security is important and I can say that the United Kingdom,
and I confidently believe the Community, will not ask to go
back on that agreement despite the worsening in the economic situation that faces, us. And that will remain our position even if other major countries (the reference which the
audience will understand, is to the United States) seek to go back on the agreements which they negotiated with you.
16 We shall before long need to start considering what agree- ments should succeed the present MFA, and the bilateral agreements under it, which expire at the end of 1981 and 1982 respectively. Conditions differ materially today from those prevailing at the time the present MFA framework was concluded; and, in a changing situation, I can see no benefit to anyone in trying to arrive at premature conclusions on any new regime. The market for textile goods within the United Kingdom has been sluggish - actually
falling in recent months. There are continung changes in fashion and technology. These factors have contribured to a
quarter of a million people moving out of the industry in the
seventies. despite strenuous efforts by the UK industry to meet those challenges. Mills are closing. I am not saying that this is entirely a problem of imports. But with the penetration
of the UK market in some sensitive areas now running as high as 80% imports are clearly a major factor in the situation. But I would be less than frank if I did not say, first, that in our view management of textile imports will continue to be necessary; and, second, that we regard adherence to the existing agreement as essential in the meantime.
+
A
17 So much for imports. But the problem is just not one way. Hong Kong has a free trade policy. I congratulate you on it.
7