This is of significance because the 6% growth rate
to which Hong Kong lays claim in terms of the Heads of
Agreement consists of (1) an automatic annual growth
factor of 1%, (2) a further growth factor of 5%, which
is not automatic but which applies in those sensitive
categories in which Hong Kong's exports in the previous
year reach 95% or more of the ceilings established.
It looke most unlikely that Hong Kong will be able
to claim more than the automatic 1% growth,for the first
year of the agreement at any rate. This is not there-
be
Prather
fore, the best of times at which to argue with the Board
of Trade that Hong Kong should be granted 6 rather than
3% growth. However, Hong Kong's chief concern continues
in primiple, to be to hold the UK to the Heads of Agreement and not
to allow that substantive document to be overtaken by
the 1968 negotiations.
2.
I recommend that in the first instance you should
ask for a meeting with the Board of Trade (Mr. Goldsmith)
Tight
at which the note attached should be used as a basis of
virtually certain
discussion. It is very likely that the Industries
Division of the Ministry of Technology would be invited
to send a representative.
Board of Trade to decide this.
But it would be up to the
Would
Kapt
open
3. If that meeting proved to be unproductive we should
still have our option upon to submit the matter to the
Minister.
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