TNAG-1030-FCO40-1280-Proposed-visit-by-Humphrey-Atkins--Lord-Privy-Seal--to-Hong--1981 — Page 151

DRAFT

CONFIDENTIAL

PU 30/1210

Registry - R. and BU to me,

ted

EXE. Af

31/12

23/12

LORD PRIVY SEAL'S VISIT TO HONG KONG: 8-11 JANUARY, 1981

BRIEF NO:

COMMERCIAL RELATIONS

Points to Make

2/1/12

37

/CSE

14/12 noted per 14/12

•HARZ- 026/12

14 DEC1961

}

:

INOCK

No

31/12

CGE AF31/12 1

Textiles

1.

Understand Hong Kong (HK) disappointment at Multifibre

Arrangement (MFA) renegotiations

But very sensitive issue for

S

150,000

the Community (EC) and UK textile/clothing industry

jobs lost in UK industry in last 2 years. Industrial adjustment

takes time.

•

Presidency

2. Tried to give reasonable weight to HK interests

role may have helped to soften EC mandate somewhat. Not in interest

of HK or other exporters for EC to find itself without mandate -

danger of anarchy in textile trade.

textile/

3. HK not done badly out of previous MFA restrictions

clothing exports to UK grew by 40% during MFA2. Even if MFA3

controls tighter HK will no doubt show her usual dexterity in

making most she can out of them.

4. Do not accept effect of MFA2 simply higher UK and EC imports

from developed countries at expense of LDC exporters. Despite

recession in UK growing share of market taken by imports from

both sources.

Commercial Opportunities

1. UK export performance good in some respects though disappointing

But glad to see improvement in recent years with

in others.

1