Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted. Unclassified.

PRIVACY MARKING

In Confidence

DRAFT

LETTER

To:-

Sir John Eden Bt MP Department of Trade &

Industry

1 Victoria Street London SW1

COTTON TEXTILES: HONG KONG

Type 1 +

From

Mr Royle

Telephone No. & Ext.

Department

Thank you for your letter of 10 December.

grateful for your agreement to the amendment to

Mr Ridley's letter to Haddon-Cave.

I was

I am sure that Hong Kong do not believe that we are

committed to any concessions in January but they, and I

hope this is your view too, will expect detailed talks

when these resume.

You will have seen the views of the Governor that

the loss and resentment in the Colony could be rectified

to some extent if concessions were made in the next

round of talks along the lines suggested by the Hong

Kong delegation last week. I know that you think it is

unlikely to be practicable for us to make concessions to

one major supplier without making corresponding

concessions to other major suppliers. It is a fact

however that HMG have as much responsibility for Hong

Kong as for Lancashire and it would be most difficult

for us to accept that nothing could be done by way of

transitional arrangements to help Hong Kong simply

because corresponding concessions would have to be made

to other major suppliers.

We consider it extremly important that, whatever

British Government view we arrive at for the resumed

talks, these will be both serious and meaningful and

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