9-

MULTI-FIBRE ARRANGEMENT

25.

!

}

I realise the uncertainties and pressures that worry so many

of our businessmen in spite of the comparative buoyancy of our economy.

They result from the restrictive measures of various sorts in our leading

markets aimed at containing inflation, for the time being with resultant constraints on business activities and uncertainty in the foreign exchange and stock markets of the world. Nevertheless in spite of it all we have

not done too badly so far. But there is one particular point of

concern hanging over our textile exports. The expiry of the Multi-Fibre

Arrangement at the end of this year, and the requirement for its renegotiation

cast big shadow on the future of our textile and apparel exports which

provide jobs for nearly half our industrial workforce. Its renegotiation on

satisfactory terms is a major objective of your government. The developing

countries have never been so united in their determination to secure a fairer

better-defined MFA under whose provisions their bilateral trade with developed

with

countries can be conducted. Our negotiators will shortly be meeting again

with those from other developing countries to seek out a common position for

the next round of negotiations in Geneva in November. But we have no illusions

about our situation. With recession and high unemployment the governments of

developed countries are under immense political pressure to take a hard line

however irrelevant statistics may prove our exports have been to that recession

and unemployment.

26.

:

At this point one cannot predict the outcome. Fortunately we have

some of the best negotiators in the textile world and they are ably advised

by the Textile Advisory Board. We will play a full part in our own right

in the negotiations and vigorously defend the interests of our industry.

We also look to the U.K to see that the special circumstances of Hong Kong

are recognised and that we get fair treatment.

CONCLUSION

27.

As you will have noted, in spite of dark patches, this picturc

of cur situation is favourable against the background of an unfavourable

But I am obliged to emphasise three unfavourable

worldwide situation.

features.

/28.

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