TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 129

COM-TDEKPIAL

ineffectivences will lead to the reintroduction of quotas

and that the British industry would accordingly have poctrod

the benefit of a double restriction.

10.

The Hong Kong position is complicated. The Hong Kong

industry would undoubtedly question some of the argumento

and conclusions of the Textile Council's Report in their

application to Hong Kong. The tariff on the developing

Commonwealth, with continued free entry for sone European

countries because of our free trade relationship with them

would undoubtedly be misrepresented in Hong Kong and would

provide a strong rallying point for Communist propaganda.

11. As regards Hong Kong's exports to this country, it could

be expected that the volume of yarn and fubrios would probably fall but that exporto of garmente would probably increase

with the removal of the quota though the prices received

in Hong Kong would be lower. As stated in the President' a

papez (paragraph 13 (a), the removal of much of the existing

shift

preference margin might well lead to a shift in Hong Kong'o

purchases of raw cotton yam and cloth away from India and

These countries would therefore suffer a doublo

Pakistan.

blow.

Negotiations with Commonwealth countries

12. As stated in paragraph 12 (a) of the President's payor,

certain Commonwealth countries have contractur), sights

اس التعليم الكلية

to duty free entry for their exports to this country.

CONFEDTSKYAT.