TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 33

THE TIMES

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Cutting dated & DEC 1971 19

UK-Hongkong textile curb talks fail

By Peter Hill

Talks between officials of the Hongkong and British Govern- ments about reported moves to re- introduce quota restrictions woven cotton textile imports from the colony, appear to have broken down.

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The discussions began on Mon- day but yesterday afternoon it was confirmed by the Department of Trade and Industry that the meet- ings had ended.

A spokesman for the Hongkong Government Office in London said last night that its representatives, Mr C. P. Haddon-Cave, financial

secretary, and Mr E. P. Ho, deputy director of the Department of Com- merce and Industry, would be re- turning to the colony shortly.

The situation is that the meet- ing has ended and any statement to be made must come from the United Kingdom Government; we have no coinment to make", the spokesman added.

The DTI again offered no cou- firmation of the reports which emerged at the weekend indicating that the British Government, instead

of abolishing existing quotas at the end of the year in favour of tariffs on Commonwealth textile imports, had now decided

to operate the two measures together. This is a policy advocated in the Textile Council report on the cotton and allied textile industry's future development, more than two years ago.

The apparent change of heart by the Government has already prompted strong protests from textile industry organizations in the colony. They claim that this last minute change of British textile policy will have serious disruptive effects on Hongkong's textile industry.

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In a telegram yesterday to Mr John Davies, Secretary of State for Trade and Industry, members of the Hongkong Textile Advisory

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Board described the reported moves as an inconsiderate and unreasonable measure".

If the Government does reintro- duce quotas, industry leaders in Hongkong will donand the corre- sponding withdrawal of the new Commonwealth preference tariff.

However, some clarification of the situation is expected to be given shortly by the Government, Sir John Eden, Minister for Industry, said in reply to a question earlier this week in the Commons when Mr Harold Boardman, Labour MP for Leigh, asked if he would give serious consideration to the textile industry's plea for the intro- duction of quotas to run alongside tariffs.

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