TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 91

0003230

C.F. 323

CONFIDENTIAL

13-

similar to the C.T.A. would allow for growth and the

U.S. Government would be prepared to live with this

situation.

26.

Mr. Jordan said there was no evidence to

show that imports would continue to rise if the Vietnam

war was satisfactorily resolved and inflation urbed.

Consequently there were not the dangers to which

Mr. Nehmer had referred earlier. He recalled that when

the market had turned down in 1967 imports declined

at a much faster rate than domestic production. Some

70% of the decline in 1967 had been in imports and

only 30% in production.

27.

Hr. Nehmer said that it was necessary to

look behind the figures. The decline in imports in

1967 had been largely due to a decline in yarns and to

a lesser extent fabrics.

Imports of apparel had

continued to increase. Mr. Jordan said that looking

behind the figures he noted that U.S. production of

apparel had also increased in this period.

28.

With regard to paragraphs 3, 4 and 5 of the

H.K. Government's Note, mr. Nehmer said he wished to

up-date the figures. The import/consumption ratio for

wool was 26% and in the first 8 months of 1969 total imports

had declined by 8.1%. This decline had been principally

in yarns and tops which had declined by 26% in the

CONFIDENTIAL

/first