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the following is extracted from Cable ISD_103 dated 26th July, 1969, from Hong Kong.
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ISD103 U.K. Government's decision to impose tariff on imports of Hong Kong textiles could only mean a slowing down in the Colony's development and rate of progress in social betterment of Hong Kong people.
Chairman of the Federation of Hong Kong Industries, Doctor S.Y. Chung said this at the Federation's Annual General Meeting on July 25th.
Chung described the U.K. Government's unilateral action as "scurvy treatment" in view of the fact that Hong Kong had been most conciliatory in considering wishes of the U.K. Government in relation to textile matters "often to our own detriment".
"We can only read in this action that past concessions on our part are unappreci ted and despite the fact that Hong Kong is a Colony of the U.K. we merit no special consideration".
"We merit even less consideration than some totally foreign countries, namely those in E.F.T.A. Groun".
Chung noted that when International commitments and Hong Kong's financial reserves are involved the U.K. Government "asserts authority its special relationship with Hong Kong provides and persuading us to adopt measures not always in overall interests of our community, enters into agreements on our behalf".
was
"When it came to trade Hong Kong/considered a complete outsider."
Chung cited Portugal as a country with labour costs lower than Hong Kong and no ties with the U.K. which has gained
favourable position in the U.K. textile market largely at Hong Kong's expense.
"The ten year period of sacrifice by Hong Kong in accepting quantitative restriction on Hong Kong's textile export has benefitted Portugal and not U.K. textile industry as under E.F.T.A. agreements Portugal continues to export to U.K. duty free.
Hong Kong factories manufacturing for the U.K. market under Commonwealth Preference will be affected one hundred per cent by tariffs.
Imposition of tariff will cause distress and hardship to a sizeable group of people in Hong Kong. Chung said
"the so called thirty month period of grace will not assist manufacturers to adjust to change or to diversify their markets because current control system requires total isolation of stock and production for Commonwealth Preference market from that of other markets."
"There will not be opportunities for gradual change over from the U.K. Market to alternative markets or to alternative products for the U.K. market."
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