THURSDAY, APRIL 9, 1981
BUT BECAUSE OF A WIDESPREAD ECONOMIC RECESSION AND FALLING UNEMPLOYMENT, THE REAL PROBLEMS ARE EITHER SO INTRACTABLE OR POLITICALLY POTENT THERE MUST BE A TEMPTATION FOR GOVERNMENTS TO TRY TO QUIET PROTECTIONIST DEMANDS BY DIRECTING EFFORTS AT SURROGATE TARGETS, HE SAID.
MR DORWARD CALLED ON THE EEC AND THE UNITED STATES TO ENSURE THAT THE NEGOTIATIONS WERE REALISTICALLY AND FAIRLY CONDUCTED.
REFERRING TO A RECENT MAJOR DEBATE IN THE HOUSE OF COMMONS ON THE UK'S TEXTILE, CLOTHING AND FOOTWEAR INDUSTRIES, HE SAID IT WAS NOTABLE THAT AS FAR AS PROBLEM IMPORTS WERE CONCERNED THE FOCUS WAS ALMOST ENTIRELY ON THE UNITED STATES. EUROPEAN INDUSTRY SAW THE U.S. TEXTILE INDUSTRY AS A MAJOR THREAT TO THEIR OWN.
+THIS IS PROBABLY THE MOST DRAMATIC NEW ELEMENT AS WE CONSIDER THE FUTURE OF THE MFA,+ SAID MR DORWARD.
+ IN THE PARLIAMENTARY DEBATE, HONG KONG WAS MENTIONED ONLY TWICE, ONCE WHEN IT WAS RECOGNISED THAT THE U.K. INDUSTRY COULD ONLY REASONABLY HOPE TO COMPETE WITH US AT THE HIGH QUALITY END OF THE GARMENT MARKET AND THE OTHER OCCASION WHEN IT WAS ALLEGED THE UNITED STATES WAS UNDERSELLING US, HE SAID.
HAVING RECENTLY RETURNED FROM A VISIT TO THE UNITED STATES. MR DORWARD SAID: +JUST OVER TWO WEEKS AGO I SAW A REPORT IN THE HIGHLY REGARDED WASHINGTON POST HEADLINED PROFITS, PROGRESS LOOM LARGE FOR TEXTILE MAKERS'. IT DOCUMENTED THE DRAMATIC RESULTS OF A CAPITAL SPENDING OF US$11 BILLION BY U.S. MILLS OVER THE LAST DECADE, AND PREDICTED ANOTHER US$23 BILLION IN THE EIGHTIES. ALTHOUGH 1980 PROF ITS WERE ONLY 7.2 PER CENT UP OVER 1978, IT WAS AND I QUOTE, THE FIRST TIME IN MEMORY THAT THE MILLS HAD SURVIVED A RECESSION UNSCATHED - A REMARKABLE PERFORMANCE, IN THE FACE OF AUTO AND HOUSING SLUMPS'. THE ARTICLE CLOSED WITH A SENIOR INDUSTRY EXECUTIVE SAYING FLATLY AND CONFIDENTLY: THERE IS NO QUESTION NOW THAT WE CAN COMPETE'.
+THAT IS, OF COURSE, THE MILL SECTOR,+ SAID MR DORWARD. THE U.S. APPAREL INDUSTRY IS MORE FRAGMENTED AND LESS CAPITAL INTENSIVE. IT DOES, HOWEVER, ENJOY OVER 85 PER CENT OF CONSUMPTION IN THE BIGGEST SINGLE MARKET IN THE WORLD.
+ABOUT 85 PER CENT OF U.S. IMPORTS ARE CONTROLLED UNDER BILATERAL AGREEMENTS. IMPORTS INTO THE U.S. FROM 1971 TO 1979 INCREASED AT AN AVERAGE RATE OF ONLY 2.7 PER CENT A YEAR, AND HONG KONG, AS THE MAJOR SUPPLIER, HAD ONLY 1.3 PER CENT OF U.S. CONSUMPTION IN 1979, + HE SAID.
+1 MENTION THESE FACTS AND FIGURES TO MAKE THIS BASIC POINT. I THINK WE WILL BE AMPLY JUSTIFIED THIS YEAR IN LOOKING TO THE UNITED STATES, IN ITS OWN ENLIGHTENED SELF INTEREST, TO EXERCISE ITS CONSIDERABLE AUTHORITY AND INFLUENCE TO ENSURE THAT NEGOTIATIONS ON THE FUTURE OF THE MFA ARE REALISTICALLY AND FAIRLY CONDUCTED- THAT THE PROVISIONS SOUGHT BY THE DEVELOPED IMPORTING COUNTRIES ARE COMMENSURATE WITH WHAT ECONOMIC CIRCUMSTANCES CLEARLY JUSTIFY- AND, MOST PARTICULARLY, THAT DEVELOPING COUNTRY EXPORTERS ARE NOT HELD SOMEHOW ACCOUNTABLE FOR DIFFICULTIES AND PROBLEMS FOR WHICH THEY ARE NOT RESPONSIBLE,+ SAID MR DORWARD.
LAST YEAR
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