- 2 -
'The disruptive effects of this sudden volte-face are bound to be
serious, particularly for those firms who have already, in good faith,
entered into firm contracts on grounds which they had every reason to
believe was to be the new basis. They may not now be able to perform
such contracts.'
'We will have to await the outcome of the further talks to be held in
}
January before we can assess the full effects of this on our economic prospects.
Meanwhile, we can only regard with considerable misgivings the reliability
of any future assurances from HMG, let alone their effectiveness in
protecting Hong Kong's interests under the GATT and in other international
negotiations.'
9th December, 1971
end