TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 198

7.

Nor can we and other developed countries be expected to continue

to admit a wide range of imports from the NICs, unless they in

return are prepared to accept a similarly wide range of exports

from us. Trade must be two way.

That is the only way it can grow

on a fair and durable basis. I ask you to see the point in social

terms as well. We have to ask whole ranges of our industries to

accept increasing competition from you and other NICs. This is

competition which inevitably displaces some jobs in our countries.

I recognise that, in total, we may well have gained as many jobs from

increased exports to the NICs as we have lost to their import

competition. But it is difficult to persuade our managers and unions

that the trading system is working fairly, if the industries most

affected by imports from the NICs are shut out from your markets on

the export side.

8. We welcome the steps which you in South Korea have taken to open

your own market. We hope you will do more. Our main export success

so far in Korea has been in sales of high technology products, imports

of which by and large are not subject to restraint. But your imports

of many other products in which we have a world-wide reputation are

still heavily restricted. Examples are less advanced capital goods

and consumer goods such as Scotch whisky and high quality cloth. I

frankly see no reason why these should not be freely available in

Korea.

The Adjustment Problem

9.

Continuing growth in our exports to you and to other NICs implies

a willingness on our part, subject to reasonable safeguards, to take