TNAG-0304-FCO40-340-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 15

-

The Star

18/12171

WE'VE LIVED WITH - QUOTAS FOR YEARS

DON'T think Britain's decision to retain the quota system on

spur to up-date our manufacturing techniques.

Hongkong textiles will hit our textile shares. After all, we have had to live with a United Kingdom quota system for many years.

And shouldn't we ask ourselves whether it may not be better to leave it stand, thatend of abo» lishing it and then having it reimposed when the UK enters the European Economic Community? That would cause more confusion than our tex- tiles industry may suffer now.

In any case, haven't we been lamenting be- cause the UK decision coincides with our United States market problem? Supposing we had not had to contend with the Americans' restrictions on trade, would we yell as loud over this UK

move?

Hongkong has had it too good for too long and I fear we have fallen into the habit of expect- ing this happy state of affairs to continue for ever. At the same time many of our indus- trialists appear to have persistently ignored pre- dictions, made here and elsewhere, that world trade could be heading into stormy waters in the 1970s.

Warnings

We had the warnings which would have enabled Us to change our methods of production and Operation. Most of our manufacturers haven't attempted either. But let's be fair and say some manufacturers have changed their systems and they are not as worried about the future as the majority appear to be.

Even so, whatever difficulties we feel afflict- ing us now will not continue indefinitely. More- these difficulties provide the necessary over,

And aren't we overlooking the fact that the problems which beset us also affect our com- patition? Indeed, we ought to welaoma the UK decision to retain quotas, because it gives us an edge over competitors.

Taiwan's future trade problems are much greater than ours, and as Taiwan's problems worsen, so must ours þecome easier.

are

The same can be said for South Korea, which is still only in the midst of development. And if, as President Park has stated, the two Koreas on the verge of another war, South Korea may for a time cease to be a competitor. That could apply also to India and Pakistan, if the Indo-Pak War is prolonged. Both India and Pakistan are large-scale textiles producers. Their output must be hit by the war.

If the Indo-Pak War is not ended shortly, Britain may face a fall-off in textiles supplies from the sub-continent and we may find our quota is increased to take up some of the slack, There is still another point we tend to over- look. More and more, our textiles mills have been concentrating on the middle and top end of market. Most of our major competition is still in the cheap end. So we are better able to withstand both competition and imports than we were five years ago,

Our best textiles firms know this. They are the firms which are listed on the stock market. If the counters are hit by the UK quota system decision, it will be no fault of the companies. They will continue to do well, if slightly less better than before.

1

:

Page 15Page 16