TNAG-0241-FCO40-277-Agreements-under-GATT-long-term-arrangements-for-exporting-o-1970 — Page 21

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CONFIDENTIAL

K.27).

P.A. please.

10/1/5/10.

Brief No. 8

VISIT OF THE SECRETARY OF STATE TO HONG KONG

APRIL 1970

TEXTILES

SPEAKING NOTES

I fully realise the importance to you of your trade in textiles and have some knowledge of the difficulties you face.

A further extension of the Long Term Arrangement on cotton

textiles now seems inevitable. I note, however, that you and

other exporting countries are seeking to obtain some measure of

relaxation of its provisions.

I understand that HMG's decision to introduce, with effect

from 1 January, 1972, e tariff on cotton textile in place of the present quantitative restrictions should not materially affect

the volume of your trade with the UK

although I realise that

You will no

there could be significant changes in its pattern.

doubt wish to discuss with us in due course problems which this

change of policy will raise for you.

Perhaps the opportunity

will occur later this year when we will need to consider with

you the extension for a year of the restraint arrangements set

out in the leads of Agreement.

The steady american pressure for restraints on their

imports of non-cotton textiles from low-cost producers is undoubtedly a worrying development for us all. Our joint efforts to persuade the Americans to take their problem into the GATT

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CONFIDENTIAL