TNAG-0385-FCO40-431-Trade-relations-between-Hong-Kong-and-the-EEC-1974 — Page 39

AEC Generalised

Preference Scheme

HK textilemen dissatisfied with Govt attitude

By VICTOR SU

Local textile industrialists yesterday expressed deep dissatisfaction over a statement by the Director of Commerce and Industry, Mr David Jordan, at Wednesday's Legislative Council meeting that the British Government would not be able to get agreement on the inclusion of and Hongkong textiles footwear in the EEC's Generalised Preference Scheme for 1974.

Replying a question put by the Chairman of the Federation of Hongkong Industries, Mr T.K.. Ann, an unofficial Legco member, Mr Jordan said: “I think we must admit that it must be left to Her Majesty's Government to decide the tactics of the operation."

Ten textile organisations,

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headed by the Chairman of Hongkong Cotton Spinners'

Association, Mr Vincent Too, have now sent a joint letter to Mr Jordan.

The letter said: “Hongkong's textile industry as a whole is being confronted, even now, with difficult sales problems in major overseas markets, even if no further aggravation were introduced by way of discrimination against its products that will inevitably result from the Community granting an advantage to Hongkong's strong and fast- emerging competitors, such as South Korea, Pakistan, India, Thailand, Yugoslavia and Indonesia.

"It must be stressed again that we are not seeking any special privilege, but merely asking that

be not discriminated against.

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"This is especially important for Hongkong with respect to marketing textiles in the United Kingdom, as even what is now left of the Commonwealth Preference will begin to be phased out in 1974, and from January 1, 1974, we will face a reverse preference from the UK in its capacity as a member of the Community.

"It is easy to foresee that the resulting squeeze vis-a-vis the UK market will be especially onerous and become practically punitive, if the Community's discriminatory measure is not changed in time.

"We urgently implore that very prompt moves on the part of the British Government be made to afford the needed relief to the signatory organisations in order that two dominant sections of industry and commerce in Hongkong will not have to bear this severe blow which will have disastrous repercussions on the entire economy of Hongkong."

Among signatory organisations are the HKCSA, Federation of Cotton Weavers of Hongkong, Hongkong Weaving Mills' Association, Hongkong Chinese Textile Mills Association, Federation of Hongkong Garment Manufacturers, Hongkong Garment Manufacturers' Association, Hongkong Cotton Made up Goods Manufacturers' Association. Federation of Hongkong Dyers, Finishers and Printers,(

Hongkong Cotton Textile Manufacturers' Group and the Hongkong Exporters' As- sociation.

The Chinese Manufacturers' Association has also urged the Director of Commerce and Industry to press further for the inclusion of Hongkong textiles and footwear into the EEC preference scheme after receipt of an explanatory letter from the Secretary of State for Foreign and Commonwealth Affairs. The CMA expressed disagreement with some of the points made in the letter, and urged the Director to discuss the question of preferences with the British Government urgently so as to alleviate the adverse impact of discrimination on our textiles and footwear industries in 1974.

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