TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 82

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G.F. 323

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7.

With regard to the statement in paragraph 2 of

the H.K. Government's Note, that imports from Hong Kong

of man made fibre products reached only 24/100 of 1% of

production and 23/100 of 1% of consumption, Mr. Nehmer

stated that the U.S. imported m.m.f. from 100 countries,

among which Hong Kong was the second major supplier of

textiles. It was not just the impact of imports from

Hong Kong which was of concern but the impact of total

imports (especially from such countries as Japan,

South Korea, Taiwan and Isra©l), which was creating major

problems of disruption or threat of disruption.

8.

Mr. Jordan pointed out that H.K.'s share of

consumption was very small (as indeed was the market share

held by imports generally) and enquired whether it was only

Hong Kong and Japan which had been asked to negotiate

comprehensive bilateral agreements and whether the U.S.

Government was talking in terms of the existence of market

disruption or the threat of it.

Sir Lugene Melville asked

whether the U.S. delegation could name the other countries

which the U.S. Government had approached or intended to

approach, and pointed out that although the U.S. Government.

was concerned with the totality of imports it must expect

if it raised matters bilaterally to be questioned in some

detail on the contribution of an individual country to

total imports and the effects on domestic production of

that contribution.

Mr. Nehner said that other low cost

/suppliers

CONFIDENTIAL