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to offer each other in trade and culture.

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Good relations between us must be to the benefit

of all

13.

Take

in your leffe

And now a word about trade. It was a great

relief to me that it was possible to achieve so

quickly the realignment of parities of the major

international currencies. With every week that the confusion of exchange rates continued the blight

of protection seemed to threaten more closely inted the munterule of the present level. the continued expansion of world trade. It has been

on this expansion that Hong Kong's success has been

built, as well as on the skill and enterprise of its

people. But now the American surcharge is removed

and the future is brighter.

14.

has

Hong Kong, of course, still has to/face

rade Carriers ageist some of weselnets.

degree of protection lits major markets for

some of its products. You are practigal and realistic

people and you know that this is the price of your

own phenomenal success, and that particularly in the

case of some textiles there must be a limit in some

markets to what is politically folerable.

This is precisely why we in the British Government

were recently obliged to modify our stand at

regrettably short notice about entry of cotton

textiles to Britain. Our predecessors in office

had decided that quotas/on cotton textiles should

be abolished and that /our industry should be

protected, in so far/as protection was desirable and necessary, solely by a tariff barrier. We inherited that decision, and confirmed it, hoping

/that

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