of course, quite unjustified and highly exaggerated but it is

nevertheless real and, having regard to the insecurity of Hong Kong's

position on the edge of China, must be handled with understanding.

Ironically one of the issues that is currently a source of strong

dissatisfaction in Hong Kong is HMG's recent decision to impose a

15% tariff on Commonwealth cotton textile imports. In the past we

have been criticised for restricting Hong Kong's trade by quotas;

now that we are abandoning quotas in favour of a tariff we are once

more criticised. We do not think Hong Kong's cotton textile trade

Hong Kong is chiefly

with the UK will vary much in volume as a result of this change,

although there may be changes of pattern.

aggrieved (as are a number of other Commonwealth countries) because

of a failure to consult before the decision was taken.

29 July, 1969

b. Carte

(W. S. Carter)

Hong Kong Department

Mr Catter

Thank you

I would have preferred

that the point in the

had not been made

last sentence

but regret

I did not receive these notes i

this

time to make

before

the meeting.

рай

point to you

27/4

Sur

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