Confidential
4
S. of S.asked what proportion of the Hong Kong
labour force was affected by the textile industry, and also what effect Hong Kong was likely to have on Lancashire. Mr. Haddon-Cave said that about half our labour force was
engaged in the textile industry. As far as Lancashire is concerned, we are in fact a very important supplier of semi- finished goods (grey piecegoods) to Lancashire manufacturers.
8.
S of S. asked when Mr. John Davies was coming to Hong Kong. Sir Stanley Tomlinson said that Mr. Davies would be going to Japan at Whitsun, but it was not known whether he would be coming to Hong Kong.
/ 9.
Mr. Haddon-Cave then referred to the question of alignment of the UK's import policy for cotton textiles with She EEC's. Hong Kong's concern was that there should be no cutback and that the new categorisation arrangements should be negotiated as soon as possible. He believed the UK would be discussing post-1972 arrangements with the Commission soon.
10.
The Governor emphasised the urgency and magnitude of this problem and said that the UK/HK cotton arrangements must be aligned with HK/EEC arrangements before the end of the year, and might have to be extended to cover mmf as well. Early action was necessary. This was one of the reasons we wanted the comparatively small matter of the quota extension negotiations out of the way as soon as possible. Hr. Haddon-Cave said that HK needed to know the post-1972
rrangements within two or three months. Hong Kong exporters aust have as much warning as possible of the new arrangements to minimize disruption. S. of S. then said that firstly,
a telegram be sent to try to clear up the problem outlined in paras 1
4 above, and secondly that DTI be asked to arrange meetings as soon as possible on the alignment question.