TNAG-0388-FCO40-434-Exports-of-knitwear-from-Hong-Kong-to-the-UK-1973 — Page 12

with our general policy on international trade, and that in

the short term it would encourage supplying countries to get as

large a share of available imports as they could and therefore

to increase the pressure on the domestic industry. We do not

therefore feel that we can advocate such a scheme.

9. Our conclusion therefore is that the best chances of

offering confidence in the future to the industry lie in

making an approach along three lines, namely:-

a) we would like to discuss with the industry the scope

for encouraging investment (especially given the

tightness of labour in the East Midlands, in other

parts of the country) with appropriate assistance

from Regional Development Grants, the Industry Act,

etc. in those sectors of production (of which jumpers,

cardigans, etc., could well be one) offering prospects

of continuing viability under the protection of the

Common External Tariff.

c)

Since confidence on industry's part in such an

investment could be undermined by fears of disruptive

منضال السامي . سماسم

imports before a new capacity could establish itself,

we could emphasise again that we remain very ready

to consider action within the terms of Mr Chataway's

letter of 10 August should such a situation occur.

We can keep an oven closer watch..on the level of

imports of knitted cardigans, sewaters, etc. We

have already asked Hong Kong to keep us informed of

the current level of their export shipments in all

the categories covered by the case. This should give

us as up-to-date a picture as possible of the

situation.

له

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