CONFIDENTIAL
SECTARY OF STATE'S VISIT TO HONG KONG: 26 29 SEPTEMBER
BRIEF NO. 8: DISCUSSIONS WITH THE GOVERNOR AND SENIOR OFFICIALS
MULTI-FIBRE ARRANGEMENT (MFA)
POINTS TO MAKE
1. UK supports the present MFA.
Essential for there to be a frame-
work agreement which deals fairly with problems of world-wide over-
capacity and stagnating demand.
2.
Appreciate efficient implementation of Textile Agreement by Hong
Kong. Energetic action on origin fraud particularly helpful.
3. Orderly marketing arrangements will continue to be necessary
after end 1981 (expiry of present MFA).
Difficulties facing industry
make this inevitable. Job losses in UK accelerating: 1979 30,000;
1980 26,500 in first quarter alone. Textile industry now employs
750,000 (compared with 1.5 million in 1950). Pace of adjustment must
remain socially, economically and politically acceptable.
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CONFIDENTIAL