-2-
had committed themselves to forward contracts in the belief that
we should adhere to the policy which we had announced. We
now have to accept the consequences of the policy change,
but our sympathy for the exporters can be mitigated by the
fact that it is they who, by leaping in with massive forward
contracts for the British market, have brought about the
collapse of the free entry policy. They too must now accept
the consequences.
4. This issue is primarily one of UK-Hong Kong relations and
I would not wish to dissent from the proposed letter to
Sir John Eden.
27 January 1972
c.c. Mr Wilford
Mr Laird -
Mr Hale
CONFIDENTIAL
ABC RS
HBC KEEBLE