being thrown back more and more on her own resources to maintain

her competitiveness and the access to the export markets she must

have.

7. It seems to me therefore a particularly appropriate time

for us to make a gesture which would give Hong Kong some practical

help with her economic problems as well as aiming to improve our

position as a supplier of the equipment she needs for her

development.

If we do not grasp the opportunity I have little

doubt the Japanese or someone else will do so.

8. I am sending copies of this minute to Richard Wood and

Anthony Royle.

DEPARTMENT OF TRADE AND INDUSTRY,

J.E.H.D.

1, VICTORIA STREET,

S.W.1.

15 February, 1971

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