TNAG-0941-FCO40-1160-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1980 — Page 58

CONFIDENTIAL

SECTARY OF STATE'S VISIT TO HONG KONG: 26 29 SEPTEMBER

BRIEF NO. 8: DISCUSSIONS WITH THE GOVERNOR AND SENIOR OFFICIALS

MULTI-FIBRE ARRANGEMENT (MFA)

POINTS TO MAKE

1. UK supports the present MFA.

Essential for there to be a frame-

work agreement which deals fairly with problems of world-wide over-

capacity and stagnating demand.

2.

Appreciate efficient implementation of Textile Agreement by Hong

Kong. Energetic action on origin fraud particularly helpful.

3. Orderly marketing arrangements will continue to be necessary

after end 1981 (expiry of present MFA).

Difficulties facing industry

make this inevitable. Job losses in UK accelerating: 1979 30,000;

1980 26,500 in first quarter alone. Textile industry now employs

750,000 (compared with 1.5 million in 1950). Pace of adjustment must

remain socially, economically and politically acceptable.

4

CONFIDENTIAL