TNAG-0388-FCO40-434-Exports-of-knitwear-from-Hong-Kong-to-the-UK-1973 — Page 5

PA

12

c.c. Mr Lam

Mr Allott

CRE:1

CRM:1

19.5

Miss Lackey

CRE: 2

MR E J CROWHURST (CTD)

Miss Welch

CRE: 2

Mr Wright

CRE: 3

Mr Penrice

Ec93

Hr Jefferies

EOS1

Mr Cousin

Ec33)

Mir Wells

(Ec33)

Mr Bentliff

Mr Brearley

Revised Submission on Knitwear

and Draft Letter to the Trade

Association

Mr Hazle

Kr Burns

Mr Goodfellow

(FCO)

Mr Dodds

FCO

(FCO)

FCO).

Miss Lowne

Mr Gwinnell

Mr Hope

Mr Pownall Mr Pryke

CT1

CT2

CTL (EF1) (CT2(b)

As regards the revised submission, CRE:1 are entirely content.

2.

We should like to see some amendments to the penultimate sentence on Page 4, which would, in our opinion, bring it more into line with the guidelines originally set out in Kr Chataway's letter of 10 August. The amended sentence would read as follows;

"In examining this disruption we take into account, as

relevant to instead of apart from the question of the prospective viability of the sector concerned, such factors as the proportion of market growth likely to be taken by low-priced imports, Whether they threatened employment, and the effect on profitability"

The original guidelines didn't refer to market growth, and we want to avoid any suggestion that such growth should be reserved for the home industry; likewise they didn't refer specifically to threats to new employment (an issue in the polyester/cotton case was how far this should be taken into account) A "threat to employment" is a general phrase which can cover either case.

3. I have discussed these amendments with Mr Lam, who agrees.

(Miss J E Elliott)

CRE:1

Room V/460: Extn:2621

19 January 1973