TNAG-0304-FCO40-340-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 24

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South China Morning Post

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8. Dee. 71.

Industry chiefs make plea for restraint by U.K.

Anxious local industrialists last night sent an urgent telegram to London pleading with the British Goverument not to rush into any unilateral action against textile imports from the Colony without full consultation with the Hongkong Government and industry.

A leading member of the Textile Advisory Board, which was one of the signatories to the telegram, pledged last night Hongkong would strive hard to stem the reported British imposition of a quan- titative quota on Hongkong's woven cotton textiles, seck consulta- tions on a compromise, or demand the removal of the tariff, due to be introduced on January 1, 1972.

He also said he and his colleagues were ready to leave at a moment's notice for the United Kingdom to explain the disruptive effect such a reported move would have Hongkong.

on

The telegram was addressed to the Secretary of State for the Department of Trade and Industry, Mr John Davies, and was signed by the members of the Textile Advisory Board as well as the chairmen of eight associations. including the Federation of Hongkong Industries and the Chinese Manufacturers' Association.

The telegram was sent three days after the Financial Secretary, Mr C.P. Haddon- Cave, and the Deputy Director of Commerce and Industry, Mr Eric Ho, made a hurried trip to the United Kingdom for talks on this issue.

The telegram read: ›

"We are shocked to learn of the reported moves by the

British Government to retain quotas on exports of woven cotton textiles from January 1. 1972. in addition

the swingeing increases in the Commonwealth preference tariff from that date.

to

"If these reports are true, we are astonished that the British Government should now proceed in a manner contrary to the many public statements which have been made since the first announcement of the tariff proposals in 1969 by (the then President of the Board of Trade of the Labour Government), Mr Anthony Crosland.

"We would consider any such move as an inconsiderate and unreasonable measure by the British Government and a British failure by the Government to appreciate the understanding which Hongkong has always shown of the United Kingdom's problems with cotton textiles.

Obligation

"It would be interpreted in Hongkong as showing the absence of a sense of moral obligation of the British Government towards Hongkong people, and be a clear indication of bad faith by the British Government.

"We urge you most strongly therefore to agree to immediate consultations between the British Government and representatives of the Hongkong Government and Hongkong textile industry before any announcement is made to give us an opportunity to explain fully the disruptive effects which this last minute change of the United Kingdom's textile policy will have for Hongkong's textile industry."

The other signatories to the telegram were the Hongkong Garment Manufacturers' Association, the Federation of Hongkong Garment Manufacturers, the Federation of Hongkong Cotton Weavers, the Hongkong Made-up Goods Manufacturers' Association, the Hongkong Weaving Mills Association and the Hongkong Printers and Dyers' Associa- tion.

Meanwhile, in a separate statement, the Chairman of the Federation of Hongkong Mr T.K. Ann, Industries described the reported British move as "very disturbing" and “an abominable reversal” of the earlier understanding given by the UK Government.

any "Industry abhors imposition of both tariff and quota, which would be a serious blow to the textile industry in particular, and detrimental to the economy of Hongkong as a whole," Mr Ann said.