2

4.

(e) Britain was doing an abrupt about-turn

where we had not given the proposed tariff

policy a chance to work.

The British decision created particular difficulties

for Hong Kong and not least for the Governor, who had

only just been appointed. Sir M Maclehose had said in his

address at the time he assumed office that one of his prime

tasks was to do all he could to ensure that growth and

expansion would continue; he would thus be faced with an

unexpected and very sudden crisis where British policy was

inconsistent with earlier British statements. This could

only lead to strong criticism in the Colony (some had

already appeared in the South China Mail of 6 December)

that our action showed a complete absence of the moral

obligations the British Government should have for the

people of Hong Kong.

5. Hong Kong would therefore seek from HMG an assurance

that, when there was more time available, there should be

meaningful consultations on the ways and means by which

the new policy could be ameliorated for Hong Kong.

Mr Grant said we would consider any specific proposals very

carefully.

6 December 1971

c.c

Mr Logan

Mr Bottomley

Sir L Monson

Mr Laird

Commodities Dept. (4)

CONFIDENTIAL

H E J Hale Commodities Dept. G68/G G98

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