TNAG-0627-FCO40-775-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 46

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UK's total imports of textiles and clothing come from other

members of the EEC, the EFTA countries and other developed

countries; and about 40% by value of the UK's total clothing

imports come from these developed countries.

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We shall not, and indeed we are not in a position

to, question the UK industry's need for protection or increased

protection. This is entirely a matter for H.M. Government.

I would only wish to note that in the first quarter of 1977,

British exports of textiles and clothing as a whole increased

in value by 47% while exports of clothing alone increased

in value by 61%.

Considering that these increases come on

top of a 40% increase in 1976 in the value of British exports

of textiles and clothing as a whole, and considering the high

proportion of British production which is exported (we do not

have precise production figures but we believe that in 1976 the

UK's exports of textiles and clothing were equivalent to 26%

of British consumption and 84% of British imports), it seems to

us that the UK industry is doing quite well. In addition to this

there are also, as I have mentioned, the recent reports in the

UK press of increased profits for some of the UK's largest textiles

corporations and I refer here to the recent financial statements

of Courtaulds, ICI, and Coats Paton. I am sure I need not point

out to you the inequities of the situation specially when seen

from the point of view of Hong Kong manufacturers who will be

at the receiving end of any restrictive policies on textile

imports which may be pursued by the EEC both multilaterally and

bilaterally.

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