THE TIMES MONDAY JANUARY 13 1969
NORTHERN INDUSTRY
By R. W. SHAKESPEARE
Hongkong's clothing invasion
During 1968 about £100m. worth of foreign-made clothing came into Britain. These imports, mostly from low-wage countries, reached
a record level, some 40 per cent higher than the total for the previous 12 months.
Even after taking account of higher post-devaluation prices, the number of garments coming into the country was significantly greater in almost every category than it was during 1967
One of the main factors in this overall increase in imports was a large build-up in deliveries from Hongkong. During the first 10 months of last year shipments of garments' from Hongkong to Britain were worth over £38m. They entered the country duty free under the voluntary quota arrangements with Common- wealth countries.
The Manchester Chamber of Com- merce garment manufacturers' section --an influential group, since the city is rivalled only by Leeds as a centre of the making-up trades--remains
dissatisfied with steps so far taken to regulate imports.
A report just issued by the section says it remains to be seen whether the 50 per cent import deposit regu- lation will curtail foreign shipments. It adds: "As a temporary expedient designed to improve the country's balance of payments and not to shel- ter industry from the threat of over- seas competition, the deposit may offer a breathing space, but nothing more."
The Government have said that it future policy regarding textile imports after the Present quota arrangements end in 1970 will not bel determined until it has studied acc port due to be published shortly on efficiency and productivity in the British textile industry.
The Chamber of Commerce re- ports say that whatever account is then taken of the position of the textile mills, this will reveal little or nothing about "the plight of makers-up who are increasingly required to bear the burden of the Hongkong clothing invasion."
The reports say that there is clearly a strong case for an entirely separate and independent study of the imports question as it affects garment manu- facturers which could then be used as a basis to regulate imports to a level which would not jeopardize the growth and prosperity of the industry at home.
In spite of its concern about this increasing flood of imports, the gar- ment industry reports a mood of cautious optimism about conditions generally, Sales last year were mar- ginally higher than in 1967 and export earnings have doubled since 1964.
About prospects for this year the Manchester report says: "The effect of the Government's latest squeeze may well hit hard in the early months of the year and many may have no choice but to shelve plans for expansion and curtail production until the
economic screw is slackened." It adds, however, that the manufacturing exporter starts the year with a distinct advantage over those firms whose emphasis is on the home market.
ARCHIVES M.31 1 3 JAN 1969
1+KK 6/548
रा
PA pl.
8.18/1/09.
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