CONFIDENTIAL

controls on textile imports were necessary. People in Hong Kong, particularly resented the fact that Hong Kong's quota was being cut back not to protect the European textile industry but in order to benefit third countries. There is unfortunately some truth in this - it reflects the EEC's desire to help the poorer developing countries at the same time as control is being tightened over overall import levels.

b) Air Services: there is resentment in Hong Kong that HMG uses kai Tak as a bargaining counter in international agreements with benefits to Britain rather than to Hong Kong as our primary consideration. The situation is not made any easier by the poor reputation that British Airways have in Hong Kong.

Under international aviation rules Kai Tak is a UK internal airport in the same way as Heathrow, We are, therefore, perfectly within our rights in treating it as such. None theless, it is a gross exaggeration to say that we think only of British interests: within the South East Asian region we try to strike a balance between the interests of CPA and BA.

c) MPS: there have been several cases where MPs, principally Labour MPs, have visited Hong Kong and, when interviewed, have been öritical of some aspect of the Colony. Such criticism often receives disproportionate coverage in the local press. The resentment that this causes needs to be seen against the relative insignificance in British political terms, of most of the people concerned.

d) The UK's attitude: the root cause of the other three complaints is the genuine belief in Hong Kong that the UK is not interested in Hong Kong. To a certain extent these feelings are inevitables Hong Kong does loom much less largely in the UK's scale of priorities than the other way round. But if we do seem to neglect Hong Kong, this is largely because we acknowledge that it is a thriving and sophisticated community well able to stick up for itself without our constant help.

2.30 p.m.

Acting Senior British Trade Commissioner: Mr JT Morrison

The British Trade Commissioner's main function is the promotion of our exports to the Colony. After a decade of steady decline in the percentage of the Hong Kong market taken by British goods,

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CONFIDENTIAL

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