CONFIDENTIAL
VISIT TO HONG KONG
1972
SIR LESLIE MONSON'S
APRIL
COMMERCIAL PROBLEMS
Brief No 1
Cotton Textiles
1. After discussions arising from our decision to retain
quotas as well as introducing tariffs, Hong Kong reluctantly agreed not to pursue further their outstanding requests for 1972, but asked for early talks with HMG, before the negotia- tions between the enlarged Community and Hong Kong over the alignment of our arrangements with Hong Kong and those of the
Six. During his visit to Hong Kong, the Secretary of State agreed that the DTI should be asked to arrange such meetings as soon as possible. Mr Ridley of the DTI has agreed that when he visits Hong Kong at the end of April, he will discuss this problem. Hong Kong are naturally anxious that arrange- ments should be agreed in good time so that their exporters may know where they stand in order to be able to enter into contracts for 1973. Before visiting Hong Kồng, Mr Ridley will have had discussions with Mr Ernst of the Commission. As a
result of this meeting it is hoped that he will be sufficiently informed of the EEC's attitude to have meaningful discussions
in Hong Kong.
3
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Non-Cotton Textiles
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2. The British textile industry have approached the DTI with a request for restraints on polyester cottons. Hong Kong sup- plies 42% of UK imports of polyester cottons; only 5% come from other developing countries. The remainder are supplied by developed countries, against whom it is considered impossible to impose restrictions (they would retaliate!). Hong Kong prices are considerably cheaper than our own and the quality
/is better
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CONFIDENTIAL