SECRET

RECEIVED IN

IMMEDIATE

CYPHER CAT/A

FM F C O C11833Z

SECRET

NEUTRAL

RIGHTRY No.51

1971 ·

NXK4 548/3

TO IMMEDIATE GOVERNOR HONG KONG TELNO 901 OF 1 DECEMBER.

MY TEL NO 895

COTTON TEXTILES

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1.

MINISTERS HAVE NOW DECIDED THAT IN ALL THE CIRCUMSTANCES HMG REALLY HAVE NO ALTERNATIVE BUT TO RETAIN IN 1972 THE EXISTING QUANTITIVE RESTRICTIONS IN ADDITION TO THE NEW TARIFF. THEY HAVE COME TO THIS CONCLUSION WITH GREAT REGRET AND ONLY AFTER THE MOST CAREFUL CONSIDERATION.

2. HOWEVER, MINISTERS ARE MOST ANXIOUS THAT THE NEW SITUATION DE EXPLAINED TO HONG KONG AND THE OTHER COMMONWEALTH. SUPPLIERS BEFORE THE CHANGE IN POLICY IS ANNOUNCED.

3.

THE POLICY ANNOUNCEMENT CANNOT BE DELAYED BEYOND 8 DECEMBER. ON THE ASSUMPTION, THEREFORE, THAT IT WOULD BE HELPFUL TO YOU TO BE ABLE TO SAY LATER THAT A TENA HAD BEEN IN LONDON FOR DISCUSSIONS, WE SUGGEST THAT THEY SHOULD ARRIVE HERE AT THE WEEKEND FOR TALKS (WHICH WILL BE HELD AT THE DEPARTMENT OF TRADE AND INDUSTRY) ON

6 DECEMBER.

MIFT CONTAINS TEXT OF AIDE MEMOIRE HANDED TO FOREIGN AND COMMONWEALTH COVERNMENTS. YOU MAY WISH TO DRAW ON THIS IN PRESENTING THE PROBLEM TO EXECUTIVE COUNCIL.

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IT IS PARTICULARLY IMPORTANT THAT MINISTERS' CONCLUSIONS SHOULD REMAIN CONFIDENTIAL UTIL THE ANNOUNCEMENT IS MADE.

6.

PLEASE PASS COPY OF THIS TELEGRAM AND OF MIFT TO SENIOR TRADE COMMISSIONER FOR HIS INFORMATION ONLY.

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INTERNATIONAL TRADE DISTRIBUTION:

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