THE CLOTHING TRADE PROBLEM
The statistics of UK clothing imports from Hong Kong suggest that restraints based on fibre are increasingly meaningless so far as clothing is concerned.
2. So far as the UK is concerned, a sensible approach to the clothing trade problem would be:
3.
(a)
selective ie separate out particular categories of clothing forming a single market cg shirts and blouses;
(b) multi-fibre (ie grouping all fibres together);
(c)
probably multi-structural, unless there were special employment factors (ie grouping weaving and knitting together).
It is thought that such an approach would commend itself to Hong Kong. As we understand it, Hong Kong has built up world-wide large woven cotton quotas but is vulnerable to quotas based on a single-fibre or single structure approach; these would limit Hong Kong in growth areas and leave it with unusuable woven cotton quotas.
4. The UK is now very concerned about the diversion of Hong Kong and other Far East clothing experts from the US to the UK, as a result of the US restraints on non-cotton textiles. It is clear that clothing imports are rising very rapidly, particularily shirts, knitwear, overalls and trousers.
5. How would Hong Kong react to the idea of the UK exploring with the EEC the idea of multi-fibre multi-structural quotas to hold the position on the sensitive categories of clothing until a new world textile policy can be worked out for after the end of the CTA?
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Private notes are available after approval.