TNAG-0939-FCO40-1158-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1981 — Page 10

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In reply to a question from the Chairman, Mr. Bailey said that, on the whole, the facts were generally misunderstood by the journalists whose comments and agruments were often lopsided. Mr. Parkinson said that for some time he had felt that the Government's case was not being fully understood. Since 1979 he had been seeking out the journalists and exposing them to the facts. As a result, they were now aware that there was another point of view. There was now a noticeable change in tone in their commentaries.

24.

Mr. Nicholl said that low cost imports were often blamed for causing problems to the UK industry. Poverty should not however be regarded as a crime. If this concept was pursued to its logical con- clusion, then UK, because of its lower cost, should not be exporting to FRG.

25.

Miss Wong said that in 1979 Hong Kong was the UK's third largest market in Asia for manufactured goods, surpassed only by Japan and India. In the last five years, the growth rate of UK exports of manufactured goods to Hong Kong had been nearly twice as high as to Japan. She asked Mr. Parkinson if HMG appreciated how important the Hong Kong market was and how favourable a market it was for the UK. Mr. Parkinson replied in the affirmative.

25.

Referring to Mr. Parkinson's earlier question regarding what Hong Kong wanted in the next MFA, Mr. Cheong said that what Hong Kong did not want was an MFA in which

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(1) growth rates and flexibility provisions were not

clearly defined and quantified;

(2)

(3)

a general waiver was included that would permit participating countries to depart completely from the letter and spirit of the parent Arrangement and, moreover, one that would give the more powerful trading nations a licence to dictate their terms to those which had no power to retaliate, and

the access rights of certain developing countries

were capable of being reduced to accommodate

other developing countries.

Mr. Cheong went on to say that the MFA was very important to Hong Kong's textile trade. He asked if Mr. Parkinson would give an assurance that HMG would protect Hong Kong's legitimate interests when ESC trade policy affecting Hong Kong was being formulated particularly in respect of the MFA. Mr. Parkinson said that Hong Kong's views were well known to HMG which had a vested interest in the continuing pros- perity of Hong Kong.

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The Chairman said that the exchange of views had been both interesting and useful. He then thanked Mr. Parkinson for attending the meeting with Members of the Textiles Advisory Board.

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