CONFIDENT TAL

9.

Hong Kong would require the authority of HMG to negotiate a

voluntary restraint agreement with the US. In view of what we and

Hong Kong now know, in confidence, of the likely attitude of the U.S.

at such negotiations, Hong Kong is less keen than formerly to

approach the Americans. In the meantime the Japanese continue to

refuse to accede to U.S. requests for comprehensive long-term restrain

Defensive Speaking Note:

10. HMG's Attitude to the Mills Bill

This subject does not strictly fall within my province; but

nevertheless, I should like to make it clear that the U.K. Government

shares Hong Kong's concern at protectionist developments in the U.S.A.

The effect on the economy of Hong Kong of Britain's entry to the

Common Market.

11. /Please see brief prepared by European Integration Department./

The effect of the proposed import quotas on textiles by the United

States.

12. HMG are naturally concerned about the possible adverse effects

of the proposed United States Trade Bill on the economies of Hong

Kong and other interested parties.

Commodities Department,

Foreign and Commonwealth Office.

7 September, 1970

CONFIDENTIAL

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