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8.
Mr Haddon-Cave said that he understood this situation, but
Hong Kong's textile industry lived by its profitability and must
have the freedom to maximise this. For tariffs to be imposed on
top of an archaic quota system placed the Hong Kong textile industry
in a straitjacket. It was true that the real growth in national
product in Hong Kong in the 'Sixties' had been between 71 and 91%
(compound) and as much as 11% in 1969-70. But it had to be
remembered that the minimum to maintain the momentum of the
economy was between 6-7% and the Colony was concerned at its
current trade performance. The American Agreements on non-
cotton textiles would lead to further slowing down in growth and
for this reason Mr Haddon-Cave had found it hard to be told that
one of the reasons for the change in British policy was the
American Agreements.
9.
The meeting concluded at 17.25.
Commodities Department
FORELUN AND COMMONWEALTH OFFICE
7 December 1971
Distribution: Mr Bottomley
Sir L Monson
Mr Keeble
Mr Laird
Commodities Department (4)
3
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