PRIORITY
CYPHER/CAT A
FM FCO 211815Z
CONFIDENTIAL
PERSONAL
CONFIDENTIAL
Euler +PA.
Comed to HKK 6/565/8
(138)
TO PRIORITY PERSONAL GOVERNOR HONG KONG TELNO 808 OF 21/9. 1972
MIPT: POLYESTER COTTON TEXTILES
PERSONAL FROM SECRETARY OF STATE
1. BEFORE YOU RETURNED TO HONG KONG, CHRISTOPHER CHIT AWAY
AND OFFICIALS OF THE DTI AND FCO HAD EXPRESSED THEIR CONCERN
TO YOU OVER THE SERIOUS DANGERS INHERENT IN THE FAILURE 50 FAR
TO REACH AGREEMENT OVER RESTRAINTS ON HONG KONG'S EXPORTS TO
BRITAIN OF POLYESTER COTTON TEXTILES.
2. 1 SHARE THIS CONCERN. WE HAVE DONE ALL WE CAN TO FIND A
REASONABLE BASIS FOR SETTLEMENT, AND GIVEN THE STRENGTH, WHICH MY COLLEAGUES AND I HAVE ACCEPTED, OF THE BRITISH BUSTRY'S CASE, WE HAVE VERY LITTLE ROOM FOR MOVEMENT IN THE FOURTHCOMING-
RESUMPTION ON 29 SEPTEMBER. IF THERE WERE NO OTHER WAY TO SECURE
A REASONABLE SHARE OF THE BRITISH MARKET FOR OUR INDUSTRY, I WOULD HAVE NO ALTERNATIVE BUT TO CONSIDER WITH MY COLLEAGUES TIME
POSSIBILITY OF IMPOSING A RESTRAINT ARRANGEMENT ON HONG KONG
EXPORTERS. WE SHOULD BE MOST RELUCTANT TO DO THIS ADA IT WOULD
BE IN NO-ONE'S INTEREST. WE REALISE THAT IT WOULD MAKE YOUR
POSITION VERY DIFFICULT AND COULD WEAKEN THE WHOLE POLITICAL
STRUCTURE OF THE COLONY, AND BY ESTABLISHING A PRECEDENT FOR ARV
IMPOSED SOLUTION IT COULD PREJUDICE SUBSEQUENT NEGOTIATION S
BETWEEN HONG KONG AND THE COMMUNITY. CONVERSELY, AS AGREED SETTLEMENT WOULD STRENGTHEN HONG KONG'S POSITION WITH THE
COMMUNITY.
3. SHOULD THERE BE A BREAKDOWN IN THE TALKS, I HAVE ASKED THAT' MINISTERS SHOULD CONSIDER THE NEXT MOVE AND HAVE THE BENEFIT OFF
YOUR ADVICE ON HOW BEST WE COULD SECURE THE NECESSARY SAFEGURIDS
WITHOUT MAKING THE RISK OF A REAL CRISIS OF CONFIDEIGE MY GELATER
THAN CAN BE AVOIDED. I AM IN NO DOUBT THAT RESTRAINTS WILL COME
BUT I HOPE THEY CAN BE AGREED BETWEEN US,
14. I
CONFIDENTIAL