PRIORITY
CYPHER/CAT A
FM HONG KONG
CONFIDENTIAL
CONFIDEN TRECTING IN
AMENDED
REGRIBYNCE:
25 JAN 1972
HKK6/548),
24/1/72.
TOP COPY
2204452
NEUTRAL
TO PRIORITY FCO TEL NO.72 OF 22 JANUARY,
HONG KONG EXPORTS OF COTTON TEXTILES TO THE UK
35
36) (61)
AT THE LAST MEETING OF THE TEXTILES ADVISORY BOARD A REPORT FROM THE HONG KONG DELEGATION ON THE TALKS IN LONDON WAS CONSIDERED,
2. THE BOARD APPRECIATE THE DIFFICULTIES FACING HMG ON THE QUESTION OF HARDSHIP YARDAGE AND ONLY SEEK AN UNEQUIVOCAL ASSURANCE THAT HONG KONG WILL BE GIVEN A FAIR SHARE OF ANY HARDSHIP YARDAGE WHICH HNG MAY SUBSEQUENTLY DECIDE TO ALLOW.
3. ON THE QUESTION OF THE SWING FACILITY FROM GROUP 111 TO GROUP IV THEY REGARD THE OFFER OF 5 PER CENT OF THE GROUP IV LIMIT (WHICH AOUNTS TO 4.6 MILLION SQUARE YARDS) AS A QUITE UNACCEPTABLE RESPONSE TO OUR ORIGINAL REQUEST OF 24 MILLION SQUARE YARDS. THEY MAINTAIN THAT THE ABSOLUTE MINIMUM ACCEPTABLE FIGURE IS 13 MILLION SQUARE YARDS. THEY ARE INDIFFERENT WHETHER IT COMES FROM
GROUP 11 OR GROUP III.
4. THEY ALSO ARGUE THAT THE PRINCIPLE OF CROSS-SWING AGREED FOR GROUP IV CATEGORIES, CANNOT BE DENIED TO CATEGORIES IN GROUPS II
AND 111.
5. THE BOARD'S CONSIDERED VIEW IS THAT IT WOULD NOT BE POSSIBLE FOR HONG KONG TO SELL ANY PACKAGE TO THE LOCAL INDUSTRY AND PUBLIC OPINION WHICH DID NOT INCLUDE THE POINTS MADE IN PARAGRAPHS
2,3 AND 4 ABOVE.
FCO PASS COPY TO HONG KONG GOVERNMENT OFFICE LONDON.
PACLEHOSE
INTERNATIONAL TRADE DISTRIBUTION:
COPIES TO:
HKD
HONG KONG GOVT OFFICE.
COMMODITIES DEPT
CONFIDENTIAL
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