TNAG-0939-FCO40-1158-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1981 — Page 96

(A) EXPRESS SATISFACTION THAT THE MISSIONERS ACCEPTED THE EASIC THEME OF OUR REPORT THAT A MARKET EXISTS AND IS

WORTHY CF FURTHER EXAMINATION AND WELCOME AUDSLEY'S OFFER TO

EX AND USE OF TOOTALS SERVICES:

(B) POINT CUT THAT BECUASE OUR REFORT DID NOT SEEK TO COVER

WOOLLEN YARNS WHICH WAS NOT THE PRIMARY OBJECTIVE OF THIS PARTICULAR EXERCISE, THE MISSION HAVE IDENTIFIED YET

ANOTHER OPPORTUNITY THAT NEEDS FOLLOWING UP:

(C) REMIND THE READER THAT HONG KONG'S MOVE UP MARKET

IS A WELL ESTABLISHED TREND THAT WILL LEAD TO INCREASING

PURCHASES OF QUALITY FABRIC (ESTIMATED BY REGAN AT 20 PER CENT OF THE TOTAL IE APPROX POUNDS STERLING 140 MILLION), THAT THE AMERICANS CLEARLY SEE THE OPPORTUNITY (SEE THE LITTLEWOOD

REPORT ON THE MERCHANDISING PLANS OF THE US CHINESE CORPORATION) AND THAT EVEN NOW IT IS NOT JUST THE JAPANESE, TAIWANESE, SOUTH

KOREANS AND AMERICANS WHO OUTSELL US IN THE WOVEN COTTON AND

MAN-MADE FIBRES MARKET BUT ALSO THE GERMANS, THE ITALIANS AND EVEN THE SWISS (SEE APPENDIX H OF OUR REPORT):

(D) PICK UP THE POINTS ABOUT SELLING THE BENEFITS OF OUTWARD

PROCESSING RELIEF TO UK IMPORTERS OF CLOTHING.

3. I ALSO SUGGEST THAT YOU SHOULD AVOID JOHN HARRISON'S

RATHER ODD REFERENCES TO THE POLITICAL MOTIVATION OF THE

HONG KONG INVITATION. YOU WILL ALSO NEED TO DISCUSS WITH

GESB AND EIS THE FORM OF CIRCULATION FOR THE REPORT. 1

ASSUME THAT THE BRITISH TEXTILE CONFEDERATION WILL NOT

WITH IT TO BE WIDELY AVAILABLE TO FOREIGN COMPETITORS.

MARCH

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