SECRET
667
10. In his telegram No. 291 the Governor reported that the
Unofficial Members had expressed fresh concern about the
effect on Hong Kong of the tariff on cotton textiles from 1
January 1972. Their mood was "one of disillusion and
frustration over HMG's policies". The Governor proposed
that this should be taken into account in the further message
to the Unofficial Members about the defence contribution.
11.
Although the Chancellor of the Exchequer has now agreed
that it would be desirable to include in the Finance Bill
3 a provision to allow temporary relief from duty for
Commonwealth cotton textiles shipped under the quota
1+K126/500/3
19
arrangements the Governor cannot be authorised to say anything
to the Unofficial Members about this until the new clause
has been introduced during the Committee stage of the Bill.
The attached 3 telegrams have already been held up for a
fortnight. In the circumstances I recommend that they be
approved for issue and that a further personal telegram be
sent to the Governor on the lines of the draft attached
following up the information given to him in FCO telegram
No. 359.
20 May 1971
се
Mr Daunt
Mr Bottomley
Mr Wilford
FPAD
A & TD
CCD
Defence D
Planning Staff
EMarin
E O Laird
4.
SECRET
Hong Kong Department