minute

Registry

No. HKK 6/548/8

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

DRAFT Zetter

To:-

Sir Arthur Galsworthy

..In Confidence

Type 1+3

From

Telephone No. & Ext.

Department

Copy to

J.O. Moreton Sur Leslie Monson

NOTHING TO BE WRITTEN IN THIS MARGIN

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in

The absence of

You are aware that H.M.G. is reconsidering its

policy towards the UK cotton industry in the light of

the recommendations of the Textile Council's Report.

existing The chief proposal of the Textile Council is that the quantitative restrictions

import quotas should be withdrawn and replaced in the

case of Commonwealth supplies by a tariff at the rate

of 85% of the existing MFN rate.

2. You now ought to know that On 30 June a Board of

(Pco(69) 10),

Trade paper on this subject to the general effect that

?

the Board were disposed to accept this proposal was

considered by the Cabinet Official Committee on Commercial

Policy.

3. We were able, I am glad to say, to give Hong Kong

Cour telegram No. 401) some warning that these discussions were in the offing/

and to suggest a number of points which we thought they

for the meeting to should examine in this context. Just in time,we had the

(H.K. Iel No 511) Governor's observations but as you will see he described

these as no more than his very tentative assessment of

confultation with the industhe likely effect on Hong Kong's exports if this measure

(118281) Dd. 391599 1,500M 2/69 Hw.

and was creased on this score in

Monday's meeting

were lobe

was imposed. He was not free, and is not now free, to

To definities consult- his industry and unless he does say an analysis.

of the likely effects will not be possible.

Λ

is

4. I think you will find the Board of Trade paper a

lacking in balance as we did ourselves. I believe that

this will be at least to some degree rectified because

Our representatives on the Official Committee with some emphasised the Commonwealth support I understand from ODM, were at pains to emphasize

/ the

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