TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 50

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1. Mr Wilford showed me the 2 Times cuttings attached and asked for comments. The first concerns the import of polyester cotton and cotton fabrics and points out that imports of both have expanded rapidly in 1972. Hong Kong is the major supplier of polyester cotton fabrics but has not filled her cotton quotas, having used the facilities for swinging into polyester cotton. The second article reports the expansion of the British man-made fibre industry.

2. DTI have confirmed my own reactions, namely that textile consumer demand is at a peak and is continuing (especially in men's shirts, light weight trousers and bed sheets). At the same time there has been increased technological switch from cotton woven cloth to MMF blends especially of polyester cotton.

3. UK polyester yarn production is at a high level and there is increased investment in the industry, notably Courtauld's new plant in Londonderry. It was in order to encourage such investment and to use up manufacturing slack in the industry that prompted the industry to seek restraint on polyester cotton imports from overseas in 1972.

4.

Because

increased demand & the swischto must blends

For these reasons and in order to beat the impend- ing restraints, more polyester cotton was shipped to Britain in 1972 than 1971 and less cotton cloth was imported.

5. For political reasons we have not attempted to restrain imports from the United States of polyester cottons. The United States is now second supplier to Hong Kong and is a very efficient producer of these fibres.

6. The Indians usually do not utilize their full quota.

M A Goodfellow

26 April 1973

(17293) 897465 400m 1/73 G.W.B.Ltd. Gp.863