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2
CONFIDENTIAL
2.
The Minister replied by thanking the Governor for his hospitality and expressing the gratitude of all members of the Mission for the very warm manner in which they had been welcomed. Before they left UK members had realised that the Mission had the potential for going wrong resulting only in unhelpful mutual recrimination. Their experience during the week, however, indicated an obvious willingness of the Hong Kong business community to seek ways to develop trade
to mutual advantage.
3.
There were a number of points which had emerged
where he felt there was room for HMG to facilitate trade,
for example, a need to simplify procedures for the clawback of duty on garments made in Hong Kong from UK fabrics.
4.
Mr Regan said that the Mission had been successful. One of the most helpful aspects was the opportunity provided for a greater mutual understanding of problems. The Mission had learned that Hong Kong manufacturers, just like their counterparts in the U.K., had a problem of inflation to face, that this was aggravated by an escalation of land values, and that on top of this they must compete for quotas in restricted markets. He felt there was a growing awareness amongst businessmen in Hong Kong that this increase in costs required them to move up market and produce something different from their competitors in South East Asia who were able to produce goods more cheaply. He mentioned that legislation would shortly be put to Parliament on the marking of origins which would require, for example, that mail order catalogues specify the origin of materials used in goods advertised. This might help the sale of Hong Kong garments made from British
fabric.
5.
The Minister noted that Mr Wilson, who was absent in the pursuit of business, had landed a very big order while in Hong Kong. Although some of the preparatory work had been done before arriving in Hong Kong the visit had enabled a rapid conclusion and had also pointed up the excellent possibilities for Yorkshire wool-work in Hong Kong.
CONFIDENTIAL
13...
Mr Nightingale