TNAG-0139-FCO40-175-Effect-of-EEC-common-commercial-policy-on-Hong-Kong-exports-1969 — Page 19

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PAKISTAN'S cotton textile industry is competitive and has managed

to take a large share of the global quotas. The change is likely

to benefit her. Concern has been expressed by the British textile

industry over the application of Pakistan's export bonus voucher

scheme to cotton textiles, on the grounds that this substantial

subsidy places the UK industry at a serious price disadvantage in

relation to imported Pakistan cotton textiles. This may be taken

up with the Pakistan Government in the near future. If it is

raised at the Finance Minis ters' Conference it should be said that

it would be a matter for negotiation through the appropriate

channels and is not suitable for discussion in any detail at the

Conference.

AUSTRALIA AND NEW ZEALAND

neither is affected to any extent (only £41,000 from Australia

and £15,000 from New Zealand in 1968). It has been explained to

them that textiles are a very difficult problem for the UK

requiring special treatment and that the tariff on textiles does

not set a precedent for tariffs on other Commonwealth products.

There will, however, be negotiations with regard to the

contractual commitment which we have to both these countries.

Commodities Department,

Foreign and Commonwealth Office.

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CONFIDENTIAL