GS 350 INMEDIATE

CYPHER/CAT A

V. FOO 161645Z

STOGET

SECRET

474

Ado

(479)

Copied 1 HKK 6/548/1

TO IMMEDIATE HONG KONG TELNO 960 OF 16 DECEMBER 1975.

PERSONAL FOR ACTING GOVERNOR FROM GOVERNOR.

MY TELMO 958: DEFENCE COSTS.

1. BY PARA 3: 1 HAVE BEEN TOLD IN STRICT CONFIDENCE THAT THE RELEVANT DECISIONS HAVE NOW BEEN TAKEN. THOSE THAT AFFECT US ARE:- (A) NO ACTION WILL BE TAKEN ACAINST IMPORTS FROM HONG KONG FOR THE TIME BEING. THIS QUESTION MIGHT HAVE TO BE RECONSIDERED AT A LATER DATE:

(B) MR HEALEY WILL ANNOUNCE THE RESTRICTIONS AND OTHER MEASURES DECIDED TOMORROW. NONE OF THESE AFFECT HONG KONG. IF QUESTIONED ABOUT HONG KONG PRODUCTS HE WILL HAVE TO REPLY AS IN (A) ABOVE. 2. IT IS NOT AT ALL CLEAR WHETHER OR HOW STRONGLY THE DEPARTMENT OF INDUSTRY WILL NOW PURSUE THEIR ATTEMPT TO RESTRICT IMPORTS OF WOVEN SHIRTS FROM HONG KONG, BUT:-

(A) THEY HAVE FAILED FOR THE TIME BEING:

(B) THE WHOLE RANGE OF DECISIONS (OF WHICH THIS IS ONLY A TINY PART)

TO BE ANNOUNCED TOMORROW HAVE BEEN REACHED WITH SO MUCH DIFFICULTY

THAT I SHOULD THINK ANY ATTEMPT TO RE-OPEN ANY PART OF THEM SOON

WILL NOT BE VIEWED WITH MUCH FAVOUR:

(C) IN ANY CASE IT IS UNLIKELY THERE WILL BE A FURTHER CABINET

MEETING BEFORE 12 JANUARY.

3. THE BEST ADVICE IS THAT AT THE WORST WE HAVE A CLEAR MONTH, AND IT IS IN FACT ANYBODY'S GUESS WHAT, IF ANYTHING, HAY EVENTUALLY

BE DONE ABOUT FURTHER RESTRICTIONS ON HONG KONG IMPORTS.

4. IN THESE CIRCUMSTANCES I AM SATISFIED THAT THE BALANCE OF

ADVANTAGE LIES IN AGREEING TO MR RODGERS'S ANNOUNCEMENT IN THE

HOUSE ON FRIDAY MORNING, AND I HAVE DO SO, ON THE UNDERSTANDING THAT NOTHING GOES SO WRONG IN TOMORROW'S DEBATE THAT HONG KONG

OF INION IS MISLED INTO BELIEVING IMPORT RESTRICTIONS AGAINST

HONG KONG PRODUCTS ARE IMMINENT.

5. HADDON-CAVE WILL GO OVER THE TEXT WITH ANDREW TOMORROW, AND WILL ENSURE THAT YOU HAVE THE CORRECT FINAL AMENDED VERSION. HE WILL

ACCOMPANY ME FOR A FINALISATION CEREMONY AT NOON TO MOD ON THURSDAY

AFTER WE HAVE BEEN ABLE TO CHECK HANSARD.

SECRET

16.

Share This Page