MEBIATE
CYPHER CAT A
}: HONG KONG 0211302
SECRET
[NEUTRAL]
SECRET
RECEIVED IN
RCN- 51
-(DEC 1971
HILK 6/5U8/
TO IMMEDIATE F C O TELEGRAM NUMBER 934 OF 2 DECEMBER 1971.
YOUR TELEGRAM NUMBER 901 : COTTON TEXTILES.
LAST
REF.
NEXT
REF.
1412)
IT WOULD CERTAINLY BE HELPFUL TO ME IF I COULD SAY THAT THE NEW SITUATION FACING H.M.G. HAD BEEN EXPLAINED TO US BEFORE THE ANNOUNCEMENT WAS MADE AND, IN ANY CASE, WE HAVE SEVERAL POINTS TO PUT TO YOU WHICH WE REGARD AS BEING OF THE UTMOST IMPORTANCE FROM BOTH A PRESENTATIONAL AND PRACTICAL POINT OF VIEW. I PROPOSE, THEREFORE, THAT THE FINANCIAL SECRETARY ACCOMPANIED BY THREE OFFICIALS FROM THE COMMERCE AND INDUSTRY DEPARTMENT SHOULD TRAVEL TO LONDON OVER THE WEEKEND READY TO HOLD DISCUSSIONS IN THE DEPARTMENT OF TRADE AND INDUSTRY AT THE BEGINNING OF NEXT WEEK.
2. IT WILL BE QUITE IMPOSSIBLE TO AVOID SAYING SOMETHING TO THE PRESS ABOUT THE PURPOSE OF THIS VISIT AND, SUBJECT TO ANY MODIFICATIONS YOU WISH TO SUGGEST, WE PROPOSE TO ISSUE A PRESS STATEMENT ALONG THE FOLLOWING LINES:-
QUOTE THE FINANCIAL SECRETARY ( MR. C.P. HADDON-CAVE) ACCOMPANIED BY THE DEPUTY DIRECTOR OF COMMERCE AND INDUSTRY (MR. E.P. HO) LEFT TONIGHT FOR LONDON TO HOLD TALKS WITH OFFICIALS IN WHITEHALL ON THE FUTURE OF HONG KONG'S EXPORTS OF WOVEN COTTON TEXTILES TO THE UNITED KINGDOM.
IN JULY 1959 H.M GOVERNMENT ANNOUNCED THAT THE GENERAL QUOTA SYSTEM FOR IMPORTS OF WOVEN COTTON TEXTILES IN THE UNITED KINGDOM WOULD END ON 1ST JANUARY, 1972 AND BE REPLACED FROM THAT DATE BY A TARIFF UNQUOTE.
3. IF PRESSED FOR FURTHER INFORMATION AS TO WHO REQUESTED
THE TALKS WE SHALL HAVE TO REPLY AS FOLLOWS:
QUOTE THE TALKS ARE BEING HELD AT THE REQUEST OF H.M. GOVERNMENT. UNQUOTE IF FURTHER PRESSED AS TO THEIR PURPOSE WE PROPOSE TO SAY THAT THERE HAS BEEN MOUNTING CONCERN IN THE UNITED KINGDOM ABOUT THE LIKELY LEVEL OF IMPORTS OF WOVEN COTTO!! TEXTILES IN THE COMING MONTHS AND THE BRITISH GOVERNMENT HAS EXPRESSED A WISH TO DISCUSS THE POSITION WITH THE HONG KONG GOVERNMENT.
MACLEHOSE
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT
SECRET
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