TNAG-0304-FCO40-340-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 41

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The action taken by Britain is indeed a serious blow to the textile industry of Hong Kong. In July, 1969, the British Government had suggested that she would impose a 15% tariff on H.K. textile imports to replace the quota system starting from the 1st January, 1972. At the same time, Britain also made an announcement: Starting from 1972, Britain would consider to use the quotas system only if the import of textile products increases in great quantity which would cause disruption and instability of market and employment conditions. The break of words by Britain has caused great resentment in Hong Kong.

Up to now, Hong Kong textile industry has deeply realised the difficulties and dangers in the years ahead. We have no extravagant hopes in the forthcoming meeting on the 10th January next year.

However, we wish the representatives to that meeting would come from the textile industry for they are more familiar with the present situation of the industry. They would negotiate with the British Government with strong reasons and would request the British Government that the 15% tariff would be paid by instalments within three years. In fact, this is a reflection that the most important industry of Hong Kong is now in a very perilous condition.

In the

Because of the world-wide economic recession in the past ten months, the increase in unemployment figures in the major industrial countries and the resurgent of protectionism, the trading prospects for H.K. industry is not optimistic. recent three months, there has already been more than twenty small knitwear factories closing down. Of course, this is a consequence of the American restriction on non-textile products. The British Government which, at this moment, adopts the double blow policy is indeed unjust and inhuman.

16 December 1971

Information Assistant