TNAG-0388-FCO40-434-Exports-of-knitwear-from-Hong-Kong-to-the-UK-1973 — Page 9

Reference

HKKK 645/8/41

654811

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Mr A C Stuart

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HONG KONG/UK INDUSTRIES REQUEST FOR RESTRAINTS ON KNITWEAR

1. I attach the revised draft submission which DTI propose to make to their Ministers. This arises from the meeting we attended on this problem on 9 January.

2.

In paragraph 8 the brief disposes of the suggestion of the trigger point on imports and in paragraph 9 proposes discussions with the UK industries, designed to encourage investment in the development areas. This will be tied with a reiteration that, should the import (from Hong Kong) of certain knitted goods become disruptive, then consideration will be given to the possibility of restraints. All this is acceptable to us.

3.

In

I think paragraph 10 could be strengthened, Although this is basically a DTI matter we do have an interest in ensuring that the criteria laid down by Mr Chat away last August should be maintained. this respect the second half of paragraph 10 could be put more positively. The basic point is that the knitting industry's case has not met the criteria laid down.

4. It is paragraph 11 that concerns us most closely. You will see it suggests that an opportunity should be made of discussing potential problems in this area with the Hong Kong Government. We must clearly be privy to any action. It would be as well to consider now what these might be. I suggest that we might tackle this in two ways. Firstly by a telegram to the Governor (following up telegram No 134 telling him of the possibility of restraints) and asking him to take whatever steps he can to avoid disruption of the UK market. Secondly, DTI might discuss this with Mr Sellers (who is 'seconded" from DC & I). This would have the advantage of giving notice formally to the Hong Kong Government that should manufacturers divert all their energies to the UK market, then they will themselves be responsible for the result ie restraint and, through David Sellers to the DC & I, it might be possible to take more effective action than the Hong Kong Government machine as such might do.

5. The draft letter attached to the submission is unobjectionable.

6. Trade Relations Department have not yet examined the submission but are likely to agree to the line I suggest.

18 January 1973

M A Goodfellow

DD 897261 230443 500M 5/72 GM 3643/2

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Reference........

MISS ELLIOTT

CRE1

cc

Mr. Ridley

CT

MISS LACK.Y

CRE2

Mr. Lam

CRE1

MISS WELCH

CRE2

Mr. Edwards

CRE2

MR WRIGHT

CRE3

Mr. Abramson

CRE3

MR PENRICE

Ec$3

Mr. Bellamy

CRE

MR JEFFERIES

Ec$1

Mr. Hall

CT2(a)

MR COUSIN

ECS3

MR WELLS

ECS3

MR BENTLIFF

T

MR BREARLEY

T

MR HAZLE

FCO

MR DODDS

STUART

FCO

MR BURNS

FCO

MR GOODFELLOW

FCO

MISS OWNE

СТ1.

MR GVINNELL

CT2

MR HOPE

CT1

MR TOWNALL

CT1

MR PRYKE

CT2(b)

NATIONAL JOINT INDUSTRIAL COUNCIL FOR THE HOSIERY TRADE: REQUEST FOR RESTRAINTS TO BE IMPOSED ON IMPORTS OF KNITTED UNDERWEAR AND OUTERWEAR FROM HONG KONG AND TAIWAN

185

At a meeting of the Textile Working Farty on 9th January, it was agreed that CT Division should redraft the submission to FUSS/ID for members' consideration.

Please would you let me end and on the draft letter

It is proposed that paragraps 1-6 of the draft submission (previously circulated on 3rd January) should remain unaltered. have any observations on the new paragraphs 7 informing the Knitting Industries' Federation and the National Union of Hosiery & Knitwear Workers of the decision (attached) by close of play Friday 19th January.

Rálsill coolment

R.J. Crowhurst

Secretary, Textile Working Party

20 th Floor Mil’bank Tower

834 4422 3xtn 551

16th January 1973.

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