TNAG-1372-FCO40-1818-Ministerial-visits-from-the-UK-to-Hong-Kong-1985 — Page 129

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3. (A) THE THURMOND/JENKINS BILL : FOR THE PAST 20 YEARS, TEXTILE

AND APPAREL EXPORTS, WHICH COMPRISE 40 PER CENT OF HONG KONG'S

EXPORTS TO THE UNITED STATES, HAVE BEEN SUBJECT TO VARIOUS

RESTRICTIVE BILATERAL AGREEMENTS. THE PROSPECT OF AN EVEN MORE

RESTRICTIVE AND UNILATERALLY IMPOSED REGIME INVOLVING SUBSTANTIAL

CUTBACKS IN TRADE, IS MOST WORRYING. IF THE BILL BECOMES LAW, HONG

KONG COULD SUFFER A LOSS IN TRADE VALUE OF THE ORDER OF US DOLLARS

1 BILLION. THIS CAN BE COMPARED WITH HONG KONG'S TOTAL DOMESTIC

EXPORTS IN 1984 OF US DOLLARS 17.7. BILLION.

(B) MULTIFIBRE ARRANGEMENT (MFA ) : THE CURRENT MFA, WHICH REGULATES

INTERNATIONAL TRADE IN TEXTILES AND CLOTHING, WILL EXPIRE ON 31

JULY, 1986. HONG KONG HAS EXPERIENCED INCREASINGLY SEVERE

RESTRICTIONS IN EACH SUCCESSIVE TERM OF THE MFA, AND GENERALLY HAS

RECEIVED WORSE TREATMENT THAN OTHER SUPPLIERS, DESPITE ITS OWN OPEN

AND FREE MARKET. IT IS THUS CONCERNED THAT PROTECTIONIST

SENTIMENTS IN ITS MAJOR MARKETS COULD, YET AGAIN, LEAD TO AN EVEN

MORE RESTRICTIVE REGIME GOVERNING TRADE IN TEXTILES AND CLOTHING,

WHEN THE CURRENT MFA EXPIRES. IT THEREFORE CONSIDERS THAT, IF THERE

IS A NEED FOR ANOTHER TERM OF THE MFA, THE RESTRICTIONS SHOULD NOT

(NOT) BE FURTHER INTENSIFIED AND HONG KONG SHOULD NOT (NOT) AGAIN BE SINGLED OUT FOR HARSHER TREATMENT THAN OTHERS. IN PREVIOUS

JEGOTIATIONS IN 1977 AND 1981 TO EXTEND THE MEA, THE HONG

KONG GOVERNMENT SOUGHT ASSURANCE FROM HMG THAT UK WOULD PROTECT

HONG KONG'S INTERESTS. THERE WILL ALMOST CERTAINLY BE PRESSURES FROM

HONG KONG'S INDUSTRIES FOR THE HONG KONG GOVERNMENT TO DO THE SAME

AGAIN THIS TIME ROUND.

YOUDE

LIMITED.

HKD

FED

PS/MR RENTON. SIR. W. HARDING

MR WILSON.

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