TNAG-0530-FCO40-625-Trade-union-relations-in-Hong-Kong-industry-1975 — Page 38

CONFIDENTIAL

"EGITA

- 9 DEC.775

3.51

NOTE OF A MEETING HELD BETWEEN THE CHANCELLOR OF THE DUCHY OF LANCASTER AUD THE TEXTILD, CLOTHING AND FOOTWEAR COMMITTEE OF THE TUC, IN CONFERENCE ROOM C, CABINSI OFFICE, 47 4.15 pm ON FRIDAY, 4 JULY 1975

Present:

1.

Chancellor of the Duchy of Lancaster

Mr J MacGougan, Chairman, Textile, Clothing and Garment

Committee, TUO

Mr S Pursey, TÜC

Hrs P Turner, GU

Mr H Gibson, NUHKW

Mr H Comerford, NUDBTW

Mr WO Ulrich, Cabinet Office

Mr P Ridley, Department of Industry

Mr E Wright, Department of Trade

Mr P R H Allen, Cabinet Office

Mr Lever said that he found the Committee memorandum a serious and moderate

statement of the TUC's views on the textile situation. lie would not disagree

with the memorandum's broad diagnosis of the problem, and could go quite a long

way with the Committee on their proposed remedies.

2.

2v.

Research, Modernisation Schemes recommended by the Clothing EDC

Mr Lever said that he favoured the introduction of industry-wide schemes

based on proposals worked out in consultation with the industry. He was sure that proposals to encourage research and modemisation would meet with an en- couraging response from the Government. This was an area in which the Prime

Minister was very interested. Mr MacGougan said that the Clothing EDC had told

the Department of Industry that they found the proposals for the clothing industry disappointing. The Department of Industry had proposed a selective scheme, but, unfortunately, insofar as it was selective, it covered the wrong

parts of the industry. In addition insufficient money had been allocated. The industry had costed its original proposals of £42 million - the £10 million. proposed by the DC was therefore far too small. The scheme proposed that

there would be assistance only where technological equipment worth £50,000

or more was involved. This would leave out most of the smaller concerns. Moreover, though assistance was limited to firms employing not more than 400 people where consultancy was undertaken, this was actually linked to technological

schemes, and so there would be little incentive for the smaller companies to

obtain assistance for consultancy when they could not get it for modernisation

programmes.

D.

Kulti-fibre Agreements

Mr Ridley said there was now en EBC agreement with Pakistan to prolong

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