TNAG-0762-FCO40-966-Effect-of-GATT-Multi-Fibre-Arrangement-(MFA)-on-Hong-Kong-ex-1978 — Page 191

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This brings me to the thorny question of the limits to

be applied, in 1978. This was the single most difficult part of the

negotiations.

We had this enormous problem with the Community's

ideas for distributing our quotas to others. As I have said, we

The

just refused point blank to negotiate on this point at all.

result was that in four categories they presented us with a take-

it-or-leave-it proposition and had in the end to impose limits upon

us, - but the number of categories involved is much less than it

was in the original demands and we did secure some compensation in

other categories.

So the bad news is that we cannot, in 1978, sell to the

EEC so many shirts, trousers, sweaters and knitted underpants as

we could in the past. The other product where a severe cutback was

imposed was on cotton fabrics where the limit for 1978 for the

Community as a whole is considerably lower than the limit we agreed

for the UK 18 years ago. However, this cutback on ootton fabrios

illustrates three points worthy of comment.

First, even with the much reduced levels for 1978, we

hope that we shall be able to make it possible for companies to ship

in 1978 as much as they shipped in 1977.

Secondly, the fact that a cutback theoretically so severe

should do so little damage to Hong Kong's overall textile exports

shows clearly the extent to which Hong Kong has diversified within

the textile industry itself from the relatively simple processes

of spinning and weaving into the more complex field of garment making.

You may feel that others could have done the same, and that the

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success of to pick a name at random

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Marks & Spencers proves

that it can be done.

/Thirdly,