II
Domestic Scene
3.
(a) There have been signs of mounting nervousness
in the Hong Kong textile industry.
(b) Garment makers in Hong Kong are having difficulty
getting prompt deliveries of fabric from Japan and in
consequence are nervous of placing orders because they
fear restraint will be imposed before they can make
up and ship the garments.
(c)
p
Rumours were circulating among garment makers
last week that we were about to introduce export
authorisations for certain m.m.f. garments to the U.S.
(a) This all suits the U.S. book. Nothing so far
to suggest any particular reason for increased
nervousness.
2.
3.
It is difficult to allay these fears, partly
because the future is in fact uncertain, but mainly.
because our policy is to sit tight and not volunteer
comment officially on what the U.S. might do until
they show their hand. Where pressed directly for
comment we are reacting along the lines of the U.K.
policy at I(e) above.
It could be damaging to local trading confidence
and to our position in any negotiations which may
eventuate if persons who might reasonably be considered
spokesmen for the Hong Kong textile industry were to
indicate that some form of restriction on this trade
might be acceptable. Even those with established
performance and with concern for the growing competi- tiveness of Taiwan and Korea would be short-sighted
to react in this way. It was obvious during our visit to Seoul that the Koreans were suspicious of
Hong Kong's honesty in protesting opposition to further
restraints on textiles. If this opinion is widely held- and it seems likely to be if it has reached Korea - damage has already been done..
No comments yet.
Private notes are available after approval.