TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 105

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fluctuations but the average profit on sales was about

half what it was on all durable goods.

63.

Mr. Nehmer emphasised that this information was

based on published data regarding public companies which

did not represent the bulk of the business and should not

be taken as a firm indicator.

64.

Mr. Stewart said that in the U.K. the profitability

of the small U.K. plant was expected to decrease and two

thirds of the companies to go out of existence through

bankruptcy. He expected to see a similar pattern occurring

in the U.S. and was not therefore impressed with the

information on reduced sales, production and profit adduced

so far.

Mr. Nehmer explained that the US companies were

not large, were frequently under capitalised and faced

with strong competition from inports. He was not saying

that imports were the sole cause of the difficulties which

faced these companies but he believed they were a major

and significant factor. The U.S. Government could not

say to Company X that had just been forced to close down

that the closure was due to inefficiency and not to imports.

The company would not accept that.

65.

Mr. Stewart said that the U.K. Government showed

the figures to companies in difficulties to bring home to

them that they were inefficient and not suffering at the

hands of imports. Nr. Nehuer said this was where the

/policies

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