60/F
From Peter Blaker, m.P.
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#HOUSE OF COMMONS
11
HKKE
My dias Tory.
LONDON, SWI
60
Rec. and Ack. 2 H.R...... Department
for draft reply please
for on a Na. Royle.
ron
9th February 1972
A number of Conservative Members were recently entertained to dinner by the Hong Kong Association. Members of the Association expressed a good deal of concern at the Government's decision in December about textile quotas, and especially about the short notice that was given.
Jeffrey Hamm has followed up the dinner by sending a letter to those
who attended, of which I enclose a copy.
As you know, John Tilney and I, representing the Parliamentary Group, had a talk recently with John Davies on this matter and explained the sort of impact which we feel this kind of decision is inclined to have in Hong Kong. We pressed on him the point that HMG have a unique responsibility vis a vis Hong Kong in that it is not only a developing country but a Dependent Territory. This sets it in a different category from Commonwealth countries such as India.
Dan Jones has recently been to Hong Kong and reported last week to the Parliamentary Group about feelings amongst Hong Kong businessmen on the matter. It does seem to me a pity that the efforts of the new Governor to create a new feeling of confidence should have been marred by the lateness of HMG's decision about textiles.
I hope in the circumstances that consideration can be given to the points which Jeffrey Hamm makes.
I am of course very glad that the Foreign Secretary is visiting
Hong Kong later this month.
When we had a talk recently in the Lobby I mentioned to you the suggestion made by John Tilney that Hong Kong ought to be covered by the Government's Investment Insurance Scheme set out in Cmnd 4656 of April last year. You asked me to write to you about this. I do not know what the position is, but I hope that consideration is being given to including Hong Kong. I cannot see that the fact that it is a Colony can be any reason for excluding it since the scheme will provide cover against a good many risks which could equally well apply in Hong Kong as in an independent country, e.g. "Loss arising from damage to tangible property as a result of war, revolution or insurrection, and the inability to remit profits or earnings or repatriate the original investment" (Paragraph 7 of Cmnd 4656).
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