WAH KIU YAT PO: Editorial
10 December 1971
OPPOSITION TO BRITISH QUOTA AND TARIFF ON
HONG KONG TEXTILES
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The British Government has decided to impose tariffs as well as quotas on imports of Hong Kong textile products starting on the first of January next year.
It is clear that the British decision is a serious blow to Hong Kong's textile industry. The American's restriction on her textile imports, the effects of market depressions and the protective tariff policy of the various countries have made Hong Kong textile industry in a very bad condition. Britain has taken no thoughts to aid Hong Kong in solving these problems, on the contrary, her quotas and tariff policy is a serious blow to Hong Kong textile industry. This policy is out of the expecta- tion of the four million people of Hong Kong.
Why does Britain want to take these measures? The Acting Senior Trade Commissioner of the British Trade Commission, Mr Rounthwaite, gave his explanation: "The rapid run-down of the Lancashire textile industry has been a major contributory factor. Between 1958 and 1969 the labour force fell from over quarter of a million to under 125,000. Although under the rationalisation programme it was envisaged, and indeed intended, that further reductions in the labour force would take place there has in fact been a sharp acceleration in the rate of increase of mill closures and of unemployment in Lancashire. Already this year 90 mills have posted closure notices involving over 15,000 workers and this is far in excess of the anticipated rate. Even modern fully automated factories working a three shift system are facing difficulties.
In addition to these problems the British Government has not only had to bear in mind the consequences of U.S. restrictions on imports of non-cotton textiles, which have created the risk of a diversion of Asian goods of a type produced in Lancashire, but also of heavy shipments in the pipeline at a considerably higher level than usual."
He said: "It is against this background that the British Government has reluctantly come to the conclusion that the policy previously announced of re-introducing quotas selectively only if and when imports of particular products caused disruption is unlikely to give the necessary stability of market and employment conditions.
The British Government has taken close account of Hong Kong's interests as a major supplier of cotton textiles to the British market. They continue to believe that efficient producers will be able to sell profitably to the United Kingdom. They also believe that it will still be possible for imports to satisfy up to 50% of domestic consumption of cotton textiles. This is a far higher proportion than that of any other major industrial country, all of whom have long since applied a combination of quota and tariff protection.
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This is an absurd explanation made by the British Trade Commissioner, Mr Rounthwaite. His statements, which expose errors, take no consideration for the survival of the people of Hong Kong.
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.../Firstly, the unemployment
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