121 / 616 HKK.
17 CT
эта
No. Thompson
any cuse?
མ་མ
VIAL
esle
Was work if (forst worthers in the s
D. of T.- only // Ma Ja'dy, 13 damp to /!!!! this!) (14/10
SECRETARY OF STATE FOR TRADE OFFICE MINUTE 10:
113 podn A
1
NOTE OF THE SECRETARY OF STATE'S MEETING WITH THE GOVERNOR OF HONG KONG AT 10 AM ON 27 SEPTEMBER
ose present:
Secretary of State
Fr Roberts
Mr Wright
Mr Pentreath
MAE U Units
→ Ha-po.
Sir Murray MacLehose, Governor of Hong Kong Mr Dorward
Mr Bray
12/12
A
After the Secretary of State had welcomed Sir Murray Machchose and his colleagues, the Governor said that he had come to the UK at a particularly busy time in the political life of Hong Kong since he was most concerned about reports reaching him from Brussels concerning ZEC plans for textile cuotas for Hong Kong. He emphasised that his visit was not contrived as a gesture to placate the parties most concerned in Hong Kong but was a result of his genuine concern that the proposed cut-back in textile quotas for 1978 would cause a loss of actual trade of about £60 million below 1976 figures entailing the loss of about 10,000 jobs in Hong Kong. Referring to the US/Hong Kong bilateral arrangement, the Governor said that the Americans had indicated that they would be reluctant to invoke the general consultation provision but might be forced to do so if the discrepancy between the US and the EEC agreements was too great. mentation of the EEC measures could result in a loss of trade of £130 million and a related employment loss in Hong Kong of about 20,000- in addition the US agreement were renegotiated, the resultant multiplier effect could lead to a loss in trade and jobs of as much as £260 million and 50,000 respectively. He discounted the argument that Hong Kong was very resilient; Hong Kong had recovered from its recession because of growth in US trade but this growth pattern was now being reversed and he believed that it was unlikely that the Hong Kong economic miracle would work given the present trend of world trade, and state of the industry in Hong Kong. It was firmly believed in Hong Kong that the UK Government. was in favour of the proposed new arrangements and if the results of the present discussions were unfavourable to Hong Kong the blame would be laid at MG'S door.
710009
Imple?
If
The Governor said that he was particularly concerned about the effect on UK trade prospects of an unfavourable decision for Hong Kong in the discursions on cuts in quota levels. Prospects of securing the two large contracts of current interest to the UK the Mass Transit Railway and the power station for which GEC was negotiating with China Light and Fower might be jeopardised if the Commission proposals went ahead. He would do his utmost for the UK suppliers concerned but he would not be able to compensate for the gust of irrational opinion which would sweep Hong Kong if the proposed cuts were agreed. The main complaint being voiced in Hong Kong was against the element of discrimination which they under- stood the Commission proposals to contain. The Governor believed that
with
G.R.
1