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aukiai, JaPlamond 27, 1906
It is inevitable that in a world of high unemployment 2:ght about by the general international recession, voices are lised in favour of increased protectionism, I am opposed to any - Terai
Move to dismantle the open trading system. I believe it
has been of great benefit to us all
Of course every country has some specific problem areas for which it needs to seek protection and I have been discussing some of these during my visit to Japan. I know that you wish that we could import more of your textiles, although I think you understand the very real difficulties affecting the United Kingdom and Community textile clothing industries. We can claim that in general the United Kingdom remains a market which is remarkably free of restrictions on access. The proportion of manufacturing imports able to enter Britain entirely duty free is almost 80 per cent. it was less than one-third in 1960. Much of this change is admittedly due to our membership of the European Community. But it does not bear out allegations of creeping, let alone galloping, protectionism.
There is no reason to doubt that Hong Kong will continue to export a large and growing range of well-made and reasonably priced goose to dritain. Britain will want similarly to increase the volume and rarge of its exports to Hong Kong. We are the second best customer for your goods but only sixth in order of your suppliers.
We know that success will depend on our own efforts and there are now many opportunities for us both.
4г Chairman it will be obvious from what I have said that I greatly admire the achievements of lion, Fong.
Later this afternoon I shall be asked about the talks which I have just nad with the Chinese leaders.
/ON THE