600027
C.S. 20A
From the Governor, Hong Kong
To the Secretary of State for the Colonies
Repeated to:-
Repeated to:—
Date........
My Reference.....
SAVINGRAM
2
Your Reference.....
No.
No.
No.
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Mr. Rippon, there is grave concern in Hong Kong over the proposed import quotas on textiles and footwear by the United States Government. Would not Britain's entry to the Market, coming on top of this, strike a heavy blow at the people of Hong Kong?
Com
Sir, many Hong Kong manufacturers are concerned about the competitiveness of Hong Kong goods in overseas markets. Rising production costs in Hong Kong are forcing many overseas customers of ours to turn to other countries in South East Asia, particularly Taiwan and Singapore. One of the factors is the worsening labour supply situation in Hong Kong because of the Hong Kong Government's legislation giving workers four rest days a month. It is feared that further labour legislation to improve the lot of factory workers will be detrimental to Hong Kong's export trade. Would you like to comment on this, Sir?
Britain's balance of payments position is now much more favourable than in past years. Will Britain consider moreV extensive investments and joint enterprises in Hong Kong?
The Prime Minister of New Zealand, Sir Keith Holyoake said recently that Britain would definitely not allow herself to be hampered by Commonwealth wishes in her negotiations with the European Economic Community. Would you like to comment on this please?
11. Lord Adlington, chairman of National and Grindlays Bank,
when he was here in August, said that Britain's entry into the Common Market would be good for Hong Kong but he did not elaborate. If you agree with him, will you tell us how that is so, if Hong Kong is not protected?