CONFIDENTIAL
IN FACT WHAT 13 NOW HAPPENING IS THAT THE EUROPEAN
ECONOMIC COMMUNITY SCHEME ON TEXTILES AND FOOTWEAR IS MORE BENE- FICIAL TO THIRD PARTIES, WITHOUT TICS CITHER TO THE UNITED KINGDOM OR THE COMMON MARKET COUNTRIES THEMSELVES, THAN TO HONG KONG,
THESE DOMESTIC EXPORTS FOR TWO INDUSTRIES FROM HONG KONG TO THE ENLARGED EUROPEAN ECONOMIC COMMUNITY, INCLUDING THE UNITED KINGDOM, AMOUNTED TO 40 PER CENT FOR TEXTILES AND 60 PER CENT FOR FOOTWEAR RESPECTIVELY OF TOTAL DOMESTIC EXPORTS OF
THESE PRODUCTS IN 1972,
IT FOLLOWS THAT SHOULD THE UNITED KINGDOM PROCEED ON THE LINES NOW INTENDED, EMPLOYMENT IN HONG KONG'S HAJOR INDUSTRY WILL BE THREATENED AS WELL AS IN A SUBSIDIARY INDUSTRY, TOGETHER, THE POSSIBLE ECONOMIC CONSEQUENCES OF THESE MEASURES ARE POTENTIALLY
DISASTROUS,
THE FACT THAT ONLY THESE TWO INDUSTRIES ARE THREATENED
SUGGESTS THAT A DEEPER EXAMINATION OF THE PROBLEM IS URGENTLY NECESSARY SINCE IT CANNOT BE ARGUED THAT ONLY TWO INDUSTRIES
GHOULD BE SELECTED FOR UNEQUAL TREATMENT.
UNQUOTE.
FCO PASS COPY TO HONGAID,
NORMAN-WALKER
[REPEATED AS REQUESTED]
EUROPEAN ECONOMIC DISTRIBUTION
E I D
HKI O D
TRD
..3..
CONFIDENTIAL
ADDITIONAL DISTRIBUTION FRAME
COPIES TO
HONG KONG GOVT OFFICE
6 GRAFTON ST. LONDON S W 1
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