TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 194

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IV

BUT

રહ્યું

3.

On the business remaining, the price realised could be reduced by up to 35% (if British costs fell 20%);

Therefore, profits would be reduced and this would have an effect on the overall profitability of Hong Kong mille, especially if the end of the preference arrangements meant the end of the 'Hong Kong apun and woven. requirement covering garment exports to Britain.

The end of the quote would probably mean more sales of garments to Britain (e.f. Gerashy - in some itous Hong Kong supplies over 50% of imports, crossing a 15% tarifr).

To sum up, lower profits, and a switch to garmente.

The British Government'e ittituie

1

It is important to remember that it is not a government report. The government's present attitude was pumped up by the Fresident of the Board of Trade, Ir. Crosland, at the Nottingham annual conference of the Textile Council on 20th April, when he reminded Lancashire oft-

(a) The comprehensive protection it enjoyed;

(b) The effects of new fibres and processes;

and

(c) defended the Commonwealth preference

"Britain Fooelves

arrangeanntai

important advantages from thes"

On the tariff proposal, he said hei-

1. would give it serious consideration;

2.

3.

must balance the advantages to textiles sgainst the disadvantages for other industries it preference were ended;

could not give any assurance that he would reach a decision quickly

although he hoped this would be reached by the autuan;

must firet have an assurance fros industry on improving its efficiency: the first task was 'rostructuring.

there is unlikely to be any early decision by the governsent becauset-

1.

It is waiting to see what the Americans do about non-cottons.

United

Kingdos cannot afford to strike a

protectioniet posture at this time (the DOT

(Industries 1)think the report can be

prosected as a liberal document but

the text makes this doubtful);

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