RECEIVED IN.
REGISTRY No. 51 -7 JAN 1972
"
CONFIDENTIAL
GOVERNMENT HOUSE
HONG KONG
J..b
Ph Hale
Адміні
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20th December 1971
170
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Des Authay
Hong Kong/United Kingdom Discussions on Cotton Textiles
Haddon-Cave will be acknowledging
136 Ridley's letter of 9th December about the position
reached at the end of the first round of discussions last week. But I thought I should just drop you a line to say that, of course, we understand the difficulties in which H.M.G. finds itself; and I only hope there is an equal understanding of the new situation in which the Hong Kong cotton textile industry suddenly finds itself!
I realise that it is quite impossible for H.M.G. to offer amelioration in the form of decalage or deferment of the tariff, but I do think something is owed in compensation to those who have written contracts or shipped goods without quota rights. This is what the U.K. would demand in similar circum- stances. What the compensation should be is a matter for negotiation but I suggest the most painless way for the U.K. and best for Hong Kong would be by modifying some details of the existing quota arrange- ment which was, after all, negotiated when we had \duty free entry.
I do hope that in spite of John 47 Eden's letter to you of 10th December amelioration in
some form or other will be forthcoming at the discussions arranged for the week beginning 10th January.
Anthony Royle Esq., M.P.
Many