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4. As you know, there have been a lot of problems over imports of certain textiles from Hong Kong in recent years. This is particularly true of imports of woven shirts where our domestic industry is severely threatened by the high level of import penetration. The recent indications that shirt imports from Hong Kag are likely to be down in 1976 are encouraging and, provided imports do not exceed the anticipated levels (23 million pieces) would hope that imports of woven shirts will not become a snnsitive issue in our relations with Hong Kong.
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