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from 11% to under 5% in the last decade. In contrast, the UK is Hong Kong's third largest export market, taking 10% of all Hong Kong exports in 1976 (70% of which consisted of textiles and clothing).
Line to Taked
The Minister may wish to stress the importance of the constitutional and political links between the UK and Hong Kong being buttressed by strong commercial links and to point out that it is Hong Kong's own interest that there should be an increase in the UK's exports to Hong Kong since this would make it marginally less difficult for HMG to withstand domestic pressures for fresh restrictions on Hong Kong's'imports into the UK.
VII. Toxtiles and the Multi-Fibre Arrangement (Defensive)
The vast majority of Hong Kong's textiles and clothing exports to the UK and the rest of the Community are restricted by the 1975 EEC/Hong Kong Bextiles Agreement, concluded under the GATT Multi- Fibre Arrangement (MFA). The MPA, which, together with the Community's bilateral agreements, expires at the end of this year, is now dus for renegotiation. Hong Kong, like otherproducer countries, would like to see it renewed in its present form. The Community has been in favour of renegotiation in view of the severe difficulties which the British and other European textiles industries have been facing but it has still to decide what position to adopt. The main difficulty is that of dealing with cumulative market disruption, where the French are at odds with the other members of the Community on the best way of dealing with the problem. Consultations are continuing among Commmity members in Brussels with a view to negotiations with the producer countries in Geneva in June.
Line to Take
The Minister might remind Sir Y X Kan and Dr Chung that textiles imports are a sensitive issue in the UK and elsewhere in the Community in view of the difficulties faced by domestic
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