(134392) Dd. 737115 750M 4/70 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

DRAFT

Submission

Type 1 +

From

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

.In Confidence

To:-

Mr Wilford

Sir L Monson

UK TEXTILE POLICY HONG KONG

-

Telephone No. & Ext.

Department

PROBLEM

1. The Governor of Hong Kong has asked for consulta-

tions in London in late January or early February

on the imposition of the tariff on cotton textiles

imported into Britain with effect from 1 January 1972.

He proposes an agenda as follows:

a. The probable effects on Hong Kong of implemen-

tation from 1 January 1972 of the policy regard-

ing imports of Commonwealth cotton textiles which

was announced by the then President of the Board

of Trade on 22 July 1969;

b. The further implications for Hong Kong of this

policy in the light of Britain's application to

join the European Economic Community;

c. The case for reconsideration of the implementat-

ion of this policy in view of the uncertainties

surrounding trading conditions as a result of

the EEC application;

d. Other measures which might alleviate the adverse

effects on Hong Kong trade which are anticipated.

RECOMMENDATION

2. Although it would seem unlikely that any change in

the decision to impose a tariff on cotton textiles from

1 January 1972 can be agreed, I recommend that the

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