TNAG-0304-FCO40-340-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 40

KUNG SHEUNG YAT PO (14TH DECEMBER 1971), EDITORIAL

British 'double blow' to Hong Kong Textile Industry

The American restrictions on Hong Kong's non-textile imports, the Canadian Government's announcement of enforcing the limitation on Hong Kong import of knitwear next year, the Australian Government's talk on reducing Hong Kong export of low-price garments to Australia and the British Government's policy of quotas and Tariffs are a series of blows to Hong Kong textile industry. The confirmation of the news that the British quotas on imports of Hong Kong textiles would continue in addition to the tariff has caused great frustrations in the Colony. People of Hong Kong regard the measures of the British Conservative Government as very unfriendly. Furthermore, the future development of the Hong Kong textile industry will be hindered by these

measures.

After the return of Mr C P Haddon-Cave, the Financial Secretary from London, it is quite clear that British quotas and tariffs on Hong Kong textile imports is a decided case. We do not offer much hope on the forthcoming meeting between the two governments on the 10 January next year.

At present, there are two different views on the textile problem. First, Hong Kong textile industry may be benefited as a result of the British quotas and tariff measures. The reason behind this view is that, with the continuation of the quotas, Hong Kong products can compete with those of Southern Korea and Taiwan. Second, the British double blow policy is a poisonous measures of killing the Hong Kong textile industry. United States and Britain have been the major markets for Hong Kong garments and textile exports. During the first nine months of this year, the total export amounts to 5,080,000,000 dollars of which 2,332,000,000 dollars are exports to U.S. and 960,000,000 dollars are exports to Britain, The growing tendency of high production cost in addition to the British quotas and tariffs have greatly reduced the profits of the H.K. textile businessmen.

Mr Cave, the Financial Secretary, had given three reasons for the British Government's decision. They are (1) an increase in unemployment in Britain (2) increase of mill closures in Lancashire, (3) the forecast of a greater increase in imports next year. However, we all understand that it is not Britain alone which confronts the threat of inflation. Since Hong Kong is Britain's only colony, it is expected that Hong Kong cannot be treated as other countries. The recent attacks on the British policy includes not only textile businessmen, but also members of the Councils and commercial and industrial leaders.

The action taken/...