DSR 11C

see the word 'textiles' starting to form on many

faces. I [have been] [shall be] explaining more

fully to the Governor [and his colleagues] [and the

representatives of your textile and garment industries]

the very real problems that the UK and Community

textile and garments industries have been suffering

from, and why the Multi-Fibre Arrangement,, the MFA,

restrictions have had to be extended. The UK

Government fully understands the strong feelings in Hong

Kong about these restrictions. We ask that you try to

understand our position also.

Our textile industry has contracted a great deal. Over

the past two years more than 160,000 jobs have been

lost and some 700 establishments have closed. But that

industry remains an important source of jobs in parts

of our country which have been amongst the hardest hit

by the recession of recent years. Within the limits

that these harsh economic facts, the Community mandate

and the nature of the negotiating process impose we

shall do our best to find a reasonable solution.

The record shows that Hong Kong can successfully

diversify its exports into new and growing markets.

I am confident that theinnate skills, enterprise

and flexibility which have made Hong Kong what it is

will ensure that you continue to export a large and

growing range of well made and reasonably priced goods.

/I

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