CONFIDENTIAL
7 Mr Ridley explained that the size of the problem we faced on excess orders might amount to some 30% of currently restricted yardage over and above 1972 quota levels. Acceding to Hong Kong's request, even though it amounted only to 4% 5% of this total, would bring the Government under great pressure from importers and from Parliament for the treatment of all suppliers on an equitable basis. The objective of the decision to retain quotas (which was not without interest to Hong Kong) would almost certainly be defeated.
8
It was agreed that the hardship question could be shelved until Ministers had been consulted. In the meantime there was a possibility that a special arrangement could be made to cover the corduroy case.
(The main negotiating session was then resumed: see
HONG KONG'S COUNTER PROPOSALS".)
"III:
CONFIDENTIAL
2