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FS/Lord Goronwy-Roberts
HKK6/540/2 HRM 5/500/
9 Colving to NCK 10/1
HONG KONG: DEFENCE COSTS AGREEMENT AND TEXTILE RESTRICTIONS
In
1. At this morning's meeting with the Governor, Sir Ilurry mentioned his anxieties lest all the good work that has been done on the defence costs agreement so far should be jeopardised by the imposition of import restrictions on llong Kong textiles as part of the package at present under consideration. Mr Shore had told him that long Kong exports would probably not be covered in the proposed package but that the issue might well be in doubt. fact, as you know, Mr Varley has proposed that action should be taken against Hong Kong woven shirts and EID(E) are at present preparing a draft for Hr Ennals opposing this among other of the Department of Industry's proposals. Lord Goronwy-oberts instructed us to prepare a draft minute from himself to the Decretary of State drawing attention to the connection between the defence costs agreement and the import restrictions issues.
2. I attach a draft accordingly. Lord Goronwy-Roberts might also care to see an advance copy of Hong Kong telno. 1216 to the Governor, paragraph 6 of which indicates that earlier today Members of the Executive Council and Finance Committee expressed extreme anxiety on this score.
3.
EID(E) concur.
2 December 1975
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Sir D Watson
fr Larmour
Ir Male
Mulh
PL O'Keeffe
Hong Kong & Indian Ocean Dept.
schied to HKK 10/1