TNAG-0388-FCO40-434-Exports-of-knitwear-from-Hong-Kong-to-the-UK-1973 — Page 16

both in coverage, to products for which the need could be

established, and in duration, for the period necessary to achieve

the stated objective. We remain ready to consider quantitative

restraints in such circumstances.

on our European partners.

We are urging similar policies

Against this background I reach the conclusion after a most

thorough and sympathetic reflection on the knitting industries

case that we would not be justified in seeking restraints from

Hong Kong and Taiwan at the present time. The following are my

main reasons:

a

There is little evidence of disruption from

imports of the market for knitted outer and

underwear as a whole. Apart from 3 products

weft knitted cotton shirts, children's

underwear, and jumpers, cardigans etc - import

penetration from all sources is quite low.

Against the policy summarised above we would

not be justified in introducing restraints

against the possibility that imports night at

some future time rise to disruptive levels,

though if they did we would of course be ready

to consider restraints under the criteria I

have described.

b

Imports of shirts and children's underwear

have reached a high proportion of UK consumption,

the

especially in/former case. But in both cases UK

production appears to have been maintained over

the past 3 years. It seems from the rapid growth

the

of both imports and/consumption of wert knitted

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