XN000022-1979-12-18 — Page 4

TUESDAY, DECEMBER 18, 1979

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+ APPRECIATE THAT THE WOOL TEXTILE INDUSTRY IN BRITAIN HAS ITS UPS AND DOWNS, BUT I HOPE YOU WILL LISTEN TO ADVOCATES OF PROTECTIONISM WITH GREAT CAUTION. SOME HAVE BEEN HEARD EVEN WITHIN THE BRITISH WOOL CONFEDERATION. DON'T GET HOOKED ON PROTECTIONISM, THE GARMENT PEOPLE HAVE, AND LIKE ANY ADDICT THEY ASK FOR MORE EVERY TIME A TEMPORARY AGREEMENT FOR A BREATHING SPACE EXPIRES. THEY ARE AFTER A TOUGHER MFA ALREADY, AND THE PRESENT ONE DOES NOT EXPIRE FOR TWO YEARS, MR. BRAY SAID.

IN RESPONSE TO A SPEECH PROPOSING THE HEALTH OF THE GOVERNMENT, THE SECRETARY OF STATE FOR INDUSTRY, SIR KEITH JOSEPH ASKED THOSE PRESENT TO PUT ASIDE TEXTILES FOR A MOMENT AND REFLECT ON THE MARVEL OF HONG KONG. DID THEY NOT GET THE IMPRESSION OF A DYNAMIC ECONOMY? THE HONG KONG GOVERNMENT HAD SUCCEEDED BY KEEPING ITS HANDS OFF BUSINESS. HE COULD NOT UNDERSTAND HOW THE SAME SORT OF PEOPLE WHO HAD PRESIDED OVER GROWTH IN HONG KONG HAD MANAGED TO ERODE IT IN BRITAIN.

HE SAID INDUSTRIAL RELATIONS IN THE WOOL TEXTILE INDUSTRY WERE A MODEL AND THEIR DESIGN WAS A SHINING EXAMPLE. HE APPRECIATED LIFE WAS MADE HARDER FOR EXPORTERS BY THE STRENGTH OF STERLING, BUT IT WAS ALSO MADE EASIER BY THE MFA. THE GOVERNMENT HAD SAID THAT THEY FORESAW A CONTINUED NEED FOR SOME ORDERLY MARKETING ARRANGEMENTS ON THE EXPIRY OF THE MFA. PLACES LIKE HONG KONG SOLD TEXTILES BUT THEY ALSO BOUGHT.

THE GOVERNMENT, FOR ITS PART, WOULD CONTINUE BATTERING AWAY AT TARIFFS AND WOULD WANT FAIR TRADE FOR THOSE WHO IMPORT. HE RECOGNISED THE DOMINANT ROLE OF THE RETAIL BUSINESSES OF BRITAIN, BUT THESE PROVIDED FAIR ACCESS TO MARKETS FOR BOTH DOMESTIC AND IMPORTED GOODS.

SIR KEITH DISTINGUISHED SHARPLY BETWEEN STATE TRADING COUNTRIES AND COUNTRIES THAT MAY BE DESCRIBED AS MARKET COUNTRIES, PLACES SUCH AS HONG KONG OR KOREA.

HE DID NOT THINK LOW WAGES WERE AN UNFAIR TRADING PRACTICE FOR JUST AS BRITISH WAGES WERE LOWER THAN THOSE IN GERMANY, SO WAGES IN KOREA OR HONG KONG WERE LOWER THAN IN BRITAIN. IF UNFAIR SUBSIDIES WERE BEING PAID IN OTHER COUNTRIES, PARTICULARLY EEC COUNTRIES, HE WAS PREPARED TO TAKE THIS UP IF HE WAS GIVEN THE EVIDENCE. HE REQUIRED HARD EVIDENCE, NOT GOSSIP.

BRITAIN WAS ALREADY USING THE COMMON MARKET PROCEDURES TO TACKLE THE AMERICAN SUBSIDY IN OIL PRICES BUT IT WAS NOW NECESSARY TO TAKE ANTI-DUMP ING MEASURES THROUGH BRUSSELS.

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