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.
REASON TO BE THANKFUL FOR THE ENDING OF AN ANOMALY WHICH WAS
A MAJOR SOURCE OF FRICTION AND MISUNDERSTANDING IN THE WORLD,
AND IN PARTICULAR IN THIS AREA.
I AM GLAD TO SAY THAT SINO-BRITISH RELATIONS HAVE
STEADILY IMPROVED IN RECENT YEARS. BOTH COUNTRIES HAVE MUCH TO
OFFER EACH OTHER IN TRADE AND CULTURE. GOOD RELATIONS BETWEEN US
MUST BE TO THE BENEFIT OF ALL.
AND NOW A WORD ABOUT TRADE, WHICH IS YOUR LIFE. IT WAS A GREAT RELIEF 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 TEMPTATION TO EACH OF THE MAIN TRADING NATIONS TO LOOK TO
ITS OWN DEFENCES TI MAN THE RAMPARTS AND RAISE THE DRAWBRIDGE
GREW. NOW THE AMERICAN SURCHARGE IS REMOVED AND THE FUTURE IS
BRIGHTER.
}
HONG KONG, OF COURSE, STILL HAS TO FACE TRADE BARRIERS
AGAINST SOME OF ITS PRODUCTS. THIS IS TO SOME DEGREE A TRIBUTE
TO YOUR SUCCESS, I RECOGNISE THAT OUR RECENT DECISION TO REINTRODUCE
QUOTAS FOR TEXTILES WAS A DISAPPOINTMENT TO YOU. IT WAS A
DISAPPOINTMENT TO US THAT WE FELT BOUND TO TAKE THIS DECISION.
OUR HAND HOWEVER WAS FORCED BY THE EVIDENCE THAT WE COULD NOT
IGNORE THAT SOME OF OUR SUPPLIERS- AND HONG KONG WAS NOT ONE OF
THOSE CLOSELY CONCERNED- WERE PROPOSING TO FLOOD US IN THE SHORT
TERM BETWEEN NOW AND WHEN WE ANYHOW HAD TO ADOPT QUOTAS AS
MEMBERS OF THE E E C WITH GOODS IN SUCH QUANTITIES THAT ORDERLY
MARKETING WOULD HAVE BEEN IMPOSSIBLE. WE WERE FACED WITH THE
DILEMMA OF ANY CENTRAL GOVERNMENT THAT OWES A DUTY TO THE MANY
VARIED REGIONS FOR WHICH IT IS RESPONSIBLE. IT IS BECAUSE WE ACCEPT
OUR RESPONSIBILITY TO YOU THAT YOUR QUOTA IS MUCH THE LARGEST OF
ALL- AMMOUNTING TO TWO-FIFTHS OF OUR TOTAL IMPORTS OF COTTON
TEXTILES. WE SEE ALSO YOUR NEED FOR FLEXIBILITY, AND AFTER
VARIOUS DISCUSSIONS I AM HAPPY THAT WE HAVE BEEN ABLE TO MAKE
AN OFFER WHICH YOUR GOVERNMENT IS STILL CONSIDERING BUT WHICH I HOPE
YOU WILL FIND. YOU CAN ACCEPT. IT MAY NOT BE IDEAL FOR YOU OR
FOR US- NO COMPROMISE CAN EVER BE THAT- BUT I BELIEVE IT SHOULD BE
WORKABLE AND SHOULD MEET MOST OF YOUR NEEDS AND OURS.
BUT EVEN WHERE HONG KONG HAS TO OPERATE UNDER RESTRAINTS
IN ITS TRADE WITH OTHER COUNTRIES, A VAST AND PROFITABLE MARKET
STILL LIES OPEN TO YOU, AND IF THE CONTINUED EXPANSION OF YOUR
/EXPORTS
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