A textile firm owned by legislator Henry Tang Ying-yen and under investigation for suspected illegal exporting said yesterday it had co-operated with previous US crackdowns on the problem. Peninsula Knitters said it 'reiterates that it does not participate in any transshipping activities'. The denial came after The New York Times reported that US Customs authorities were investigating whether Mr Tang's firm illegally shipped four million Chinese-made sweaters to the United States last year. '[The firm] has, in the past, co-operated with the Customs and Excise Department in the United States to crack down on transshipping so as to protect the reputation of the 'made in Hong Kong' label,' the statement reads. It said the firm was not on a recent US list of companies involved in transshipping - exporting Chinese-made textiles as their own. The newspaper report also quoted American officials as saying Mr Tang's firm was fined US$250,000 (HK$1.93 million) by British authorities after being caught trying to smuggle Chinese-made cashmere sweaters into England. Peninsula Knitters said the firm was a subsidiary and was shut in 1995 because of high overheads. It said the British firm, which had an independent management structure, was not directly managed by Peninsula Knitters, and that no staff member of Peninsula Knitters participated in its management. An aide to Mr Tang said Peninsula Knitters was only one of the shareholders of the British firm. But the aide could not give the name of the British firm nor the percentage of shares held by Mr Tang. Mr Tang was in Japan yesterday.