(iv)
HONG KONG TEXTILES
Background
1. The high level of penetration by low cost textiles from Hong Kong has caused considerable anxiety in the UK industry in recent years. Most recently attention has focused on imports of woven shirts and there has been concern that if the high level of shirt imports from all sources, reached in the first quarter of 1976, is maintained, the UK domestic industry will find it difficult to survive.
2. The latest statistics show, however, that the total quantity of Hong Kong shirts shipped so far this year is significantly down on last year and manufacturers in Hong Kong are already aware that the quota will not be fully used this year. Despite the downward trend, the Hong Kong Government have notified the Community of their intention to use the carry forward provisions (in accordance with the EEC/Hong Kong Textiles Agreement).
Imports
3. We have recently informed the Governor that we have noted the pattern of trade and that our own figures broadly confirm the trend We also made it clear that the UK textile industry must be expected to renew their pressure on the Government should shirt imports from Hong Kong rise significantly later in the year. in 1975 were 30.1 million pieces. In the first seven months this year imports were 15 million pieces (compared with 17 million to 31 July 1975). If the trend during the last few months contimes, total imports in 1976 are not expected to exceed 23 million pieces. This was the sort of level that the Secretary of State for Industry was prepared to accept when he was pressing for action to persuade Hong Kong to limit her exports at the end of last year.
Line to Take
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