TNAG-0388-FCO40-434-Exports-of-knitwear-from-Hong-Kong-to-the-UK-1973 — Page 23

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Mr Gwinnell

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Mr Lam

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CT

CRE 1

Mr Edwards

CRE 2

Mr Abramson

CRE 3

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Mr bellamy

СКЕ 4

Mrs Allott

СКЕ 1

Miss Elliott

CRE 1

Miss Lackey

CKE 2

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Mr Wright

CHE 3

Mr Penrice

EcS 3

Mr Jeffries

ECS 1

Dr McCarthy

ECS 3

Mr Wells

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Mr Bentliff

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Mr Brearley

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Mr Goodfellow Mr Dodds

FCO

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Miss Lowe Mr Pryke

CT 1

CT 2 (b)

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Knitwear Submission

We spoke about this paper, and I was glad to hear that it could be discussed at the meeting of the Textile Working Party on Tuesday afternoon.

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Briefly, we had two main criticisms of the draft. Firstly, there is no reference to the possibility that EEC knitwear exporters, rather than UK producers, wight well reap the benefits in this market of any restrictions on Far Eastern sweaters, partic- ularly bearing in mind that our tariff protection against EEC goods is to disappear. Secondly, we saw the gravest objections to the 30% proposition in paras 7 and 8, which seems to go considerably beyond the criteria laid down by Mr Chataway. We are none too clear from the drafting precisely what the proposition is or how the figure of 30% for which there does not appear to be any precedent was selected. If we are right in thinking the 30% refers to imports from all sources, it could be that this degrEE of import penetration was achieved (at any rate partially) by an upsurge in imports from developed countries; do we then clamp down on Far Eastern suppliers alone? There are of course also broader implications in conceding that 30% is the maximum tolerable import int ke, given that for a number or other products, penetration is already well beyond that mark; but now doubt CRE 1 will wish to take the lead in deploying this arguement.

Protection

On the evidence of your paper, the knitwear industry's case for penetration has not been substantiated, nor does there appe. to be any immediate threat or disruption from low-cost imports. Why then do we have any hostage to fortune beyond the promise to look e

at this again if the industry can show that the situation has or is about to deteriorate significantly.

from

Miss C H Welch

CRE 2

8/1/73