HC Deb 12 December 1977 vol 941 cc20-1
22. Mr. Arnold

asked the Secretary of State for Trade whether he met the Governor of Hong Kong during his recent trade discussions in London.

Mr. Dell

Owing to commitments elsewhere, I was not able to meet the Governor myself. However, I met him in London on 29th September.

Mr. Arnold

Is it still the case that Hong Kong, as one of the principal suppliers of textiles to the Community, is being asked to accept for 1978 an initial quota level for some products substantially below that of 1976 import levels?

Mr. Dell

It is certainly true that for certain sensitive products there will be a cutback from the 1976 levels.

Mr. Madden

As Hong Kong supplies two-thirds of the cheap textile imports to this country, does the Secretary of State agree that it is in any way unfair or unjust to ask Hong Kong to adopt a fairer attitude towards the British textile industry?

Mr. Dell

We thought it was right to ask Hong Kong to accept a certain reduction in the trade flows. Of course, we run a large balance of payments deficit with Hong Kong. If in the Multi-Fibre Arrangement discussion we were to achieve the overall result that we want, it was essential that Hong Kong should accept that position. There is now bilateral agreement, which fulfils the point in respect of which I have just answered my hon. Friend.

Mr. Hal Miller

What consideration did the Secretary of State give the Governor's representations on the argument that Hong Kong's quota should be cut back further than required by the needs of the trade, to make way for other third country suppliers?

Mr. Dell

The Governor certainly made that point when I met him on 29th September, but I indicated that in a difficult negotiation of this kind it was necessary to make arrangements for new suppliers—sometimes suppliers poorer than Hong Kong—which might wish to enter the market. If we were to meet the requirements of the mandate, the renegotiations, as the European Community as a whole saw them, would require certain action to be taken. That action, I hope, is now embodied in the bilateral agreement. At the moment, I do not wish to judge that bilateral agreement any more than any of the others to which hon. Gentlemen have referred.