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revision of the EEC/Hong Kong agreement. The Americans
would wish to avoid a downard protectionist spiral, and the implied
threat to a renewal of the MFA, to which they attach great
importance.
(iii) We would hope that any loss of jobs in the textiles
industry in Hong Kong could be offset by the movement, of labour
into other industries. In the past labour mobility in Hong Kong
appears to have been quite high. (The Commission have estimated that Member States have already lost 500,000 jobs (15%) in their
textile industries during the lifetime of the present MFA and
would lose a further large number of jobs if it was renewed
in its present form).
(iv)
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We could not accept that a falling-off in Hong Kong's
growth rate would necessarily involve a cut-back in social
programmes. The Hong Kong Government could still take
a larger slice of the GDP in order to keep these programmes
going.
(v) We naturally attach the greatest importance to British
firms winning the contract for the new power station for the China Light and Power Company. The Community action
on textiles has been approved by all Member States. are as anxious as is the UK to protect their industries.
Some, especially the French take a very tough line.
Most
We
are confident the Governor will underline this fact to
those responsible for the project. The UK would have
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