TNAG-0388-FCO40-434-Exports-of-knitwear-from-Hong-Kong-to-the-UK-1973 — Page 30

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acceptable level. We could then explain the position to the

Governor and seek his co-operation in keeping exports at an

acceptable level thus avoiding the possibility of our having

to ask for restraints. We could point out that a situation

such as that last spring when there was a rapid increase in

Hong Kong exports of polyester cottons should be avoided from

both our points of view. There is probably little he can do

in practice. But so long as the industry's fears remain

groundless, this does not matter much; while if a real upsurge

of imports does take place, Hong Kong would have been put on

notice and the subsequent negotiations for restraint might be

that much less difficult.

7. I would naturally prefer no concession to the industry

but I think that something along these lines might be acceptable

to both parties and is to be preferred to the DTI solution.

Moreover, although the concurrent danger of EEC imposed

restraints on British imports is held at bay for the moment

it is not disposed of for the longer period, and we will anyway

have to warn the Governor of this.

Do you agree please?

8 January 1973

Copy to: Mr Hazle

TRD

A C Stuart

Hong Kong & Indian Ocean Department

press strongly for

J

think

we shad press

that the

concessin give by DT1

أسه مه

existing

trate

is not

threat. If there must be

KBr. industry your proposal

- 3-

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SMS

regarded

астан

good as any.

Mi $7,

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