Mr Farry
NOTE OF A MEETING HELD DI ROCK 2020 MILLBAIK TOWER ON 23 JUM TO DISCUSS UK AND HONG KONG VIENS ON RENEGOTIATION OF THE HTA
fresent:
Me P Ridley 1 P G Hudcon
Mr R J Browm
Ir H J Tuck
I AM Comfort
Hier
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In Quot
Department of Industry
bst
1/7
The Hon Franda Tien 035
Hong Kong Delegation
MYC Chen
Kr Lam Kun-Shing
OBE
Mr Philip Lai
Mr Lau Sai-Yan
Hr Tam Tit- Fung
Mr So Kin-Ping
No Frank II L in
I Winson Lu
Ir Tao Shai-Mee
Mr Andrew IY Leung
Hr S 1 Chung
IN
REGIS .
51
- 7 JUL 1977
HKK 121
Mr Ridley opened the meeting by welcoming the Hong Kong delegation to Hillbank Tower. He expressed the admiration which UK officials has always felt for the flair and skill of the Hong Kong textile and clothing industries. He hoped that the close contacts built up in the past would be continued.
Kr Tien introduced his delegation and presented the attached statement concerning the renegotiation of the Multifibre Arrangement (IFA). He reminded the Department that on his recent visit to Hong Kong Sir Feter Carey had said that he hoped the special relationship between the UK and Hong Kong would be maintained and that the industrial interesta of Hong Kong would be fully taken into account by the UK.
Hr Ridley in his reply explained the background to the TK's policy on renegotiation of the FA, although (as he reminded the Hong Kong delegation), the negotiations would be conducted by the European Commission on behalf of the Member States of the EXEC.
He fully understood the concem felt in Hong Kong, exposed as it was on one side to pressures from textile industries in the importing countires and on the other to the competition from new suppliers of textile and clothing products among the developing countries. The U for its part was seeking to ensure that any new A should successfully regulate the pace of change in the shifting pattern of world textile trade.
As evidence of the dissatisfaction felt in the UK with regard to the operation of the existing ITA, Hr Ridley said that since 1973 employment in clothing and textiles in the Uit had declined by about 100,000. A further decline of comparable magnitude was expected by 1982 if no changes were made in a new IFA. Investment had fallen in 1976 to half the level prevailing in 1974 at constant prices.
Although the recession had certainly sericusly upset the assumptions on which the existing 17A had been negotiated, inports into the European Community from low cost sources had risen dramatically during the 17A and much more rapidly than had been envisaged especially for certain sensitive products. While the UK's deficit on trade in clothing had deteriorated from £153.9m in 1973 to £271.5m in 1976 import penetra- tion of the Ut market had risen to levels in some cases which were clearly unacceptable in that they threatened the survival of whole sectors of the UK industry. Thus import
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