CONFIDENTIAL

SECRETARY OF STATE'S VISIT TO HONG KONG: 29 MARCH TO 1 APRIL 1981

BRIEF NO 7:

DISCUSSIONS WITH THE GOVERNOR AND SENIOR OFFICIALS: MULTI-FIBRE ARRANGEMENT (MFA)

POINTS TO MAKE (If raised)

1.

Problems of world trade in textiles not getting any easier.

In 1980 100,000 jobs lost in UK textile sector (30,000 in 1979).

According to forecasts 180,000 more jobs could go this year.

2. MFA negotiations bound to be difficult.

Need for all parties

including Hong Kong to show realism and flexibility.

3. At same time HMG conscious of importance of textiles to Hong Kong.

4. Hong Kong maintains open market. We think this deserves to be

taken into account.

5. (If asked about UK Presidency) Presidency cannot dictate from

supposed to work for consensus.

Chair;

CONFIDENTIAL

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