The draft leaves unanswered the question of the transition arrangements

from quotas to tariffs, about which I minuted on 8 March. As I hope we can get

agreement on this issue the one to which Hong Kong almost certainly attaches

greatest importance in the next day or two, we can cover it in the despatch.

We discussed this morning your minute of 11 March regarding the temporary

extension of duty-free treatment after the end of this year.

If necessary,.

this point can be left for separate discussion while we settle the question of

quota enforcement.

.3

C. A. Ellis

PPPW RIDLEY

CT1

Room 931

Extn 301

Millbank Tower

12 March 1971

I

it.

As a le

*

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