}
40
SECRET
THERE WAS SOME FURTHER RATHER CONFUSED DISCUSSION, BUT THE
MOOD OF ALL UNOFFICIAL MEMBERS WAS ONE OF DISILLUSION AND
FRUSTRATION OVER H.M.G.'S POLICIES, WHICH WILL NOT BE HELPFUL TO
THE DEFENCE CONTRIBUTION ISSUE.
#
$
5. I WOULD SUGGEST THEREFORE SOME ADDITION TO PARA.5 OF THE
PROPOSED REPLY TO TAKE THIS EXPRESSION OF FEELING INTO ACCOUNT. PERHAPS SOMETHING MIGHT BE ADDED AFTER THE SENTENCE ENDING
.EXPORT TRADE AS FOLLOWS H.M.G. ARE ALSO AWARE OF
THE ADVERSE EFFECTS ON HONG KONG'S TRADE WHICH MAY RESULT
FROM THE IMPOSITION OF THE PROPOSED 15 PERCENT IMPORT TARIFF ON COTTON TEXTILES ENTERING THE U.K., AND REGRET THAT THESE MEASURES ARE NECESSARY. EVERY EFFORT WILL BE MADE HOWEVER TO
AVOID THE RE-IMPOSITION OF QUOTA RESTRICTIONS IN ADDITION TO THE
TARIFF AT LEAST UNTIL SUCH TIME AS THE U.K. ENTERS THE E.E.C.
AND IS REQUIRED IN CONSEQUENCE TO RECONCILE ITS EXTERNAL TRADE
POLICIES WITH THOSE OF THE E.E.C. THE DIFFICULTIES WHICH
HONG KONG FACES HAVE NOT YET, HOWEVER, DEVELOPED.. AS IN PARA.5)''.
TRENCH
a
(CONTINUE
FILES
HKD
FED
COMMODITIES D
DEFENCE D
FPAD
ATD
COD
PS
COPIES TO:
MR D J J BRACK MR AF THORPE
TREASURY F (AIR) 2 MOD
MR RJ SMITH DOE
LAMBETH BRIDGE HOUSE
MR P D NAIRNE
MOD
MR R GEDLING
TREASURY
MR E STRETTON
DOE
LAMBETH BRIDGE HOUSE
MR F H GWYNN MOD
MR P W RIDLEY MR R W GRAY
DTI MILLBANK
DTI
VICTORIS ST
PS/PUS
SIR I MONSON
SIR S TOMLINSON
MR WILFORD
MR ROSE
MR GALLAGHER
MR BOTTOMLEY
Copecit to M. & Toms CRE D72
2 SECRET