TNAG-0530-FCO40-625-Trade-union-relations-in-Hong-Kong-industry-1975 — Page 40

CONFIDENTIAL

or disrupting our industry.

It was only through such exports that

these countries would be able to raise their living standards so as to be able to pay their workers higher wages and give them better working conditions. However, be agreed to see what was the UK Government responsibility in Hong Kong as regards improving the

conditions of labour there.

ii. Mr MacGougan could not see where the process of erosion of the UK

textile industry would stop. Er Lever said that patterns of world trade were changing, but still the United Kingdom were selling abroad more than ever before. It was not possible to keep to rigid patterns

of trade, and over the last 20 years Lancashire textile workers har

moved to new industries. He stressed that such changes must be accepted

and it should be ensured that changes took place gradually.

iii. Kr Pursey suggested that where the Government gave assistance to particular areas of the textile industry, this should be linked with import restrictions. Mr Lever said that where the Government could pro-

text the industry from foreign imports within its Treaty obligations it

would do so.

iv. Mr Cibson said that when the EEC had discussed the mandate for the

Commission negotiating MFAs with low-cost textile exporting countries,

the UK had argued that underwear should not be within the mandate, while

the rest of the EEC wanted it included. Mr Ridley said that it was pos-

sible that the UK had not considered that this sector was in trouble, but

agreed to examine the position and inform Mr Lever shortly.

V. Mr MacGougan said that a number of the UK's EEC partners kept out

imports by administrative action. Mr Ridley said that Departments looked out carefully for any evidence of this and would be glad to take up any cases the industry had in mind. It was agreed that in these areas there

should be consultations on a continuous basis between the Departments and

the TUC.

d. Temporary Employment Subsidy

Mr MacGouran asked whether the temporary employment subsidy announced by

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