39
Wednesday, October 17, 1973
that uncertainties will continue for some time to come, and that there is
nothing which we can do about it. Meanwhile there is evidence of our
own currency maintaining its strength.
Today I can add little on the problem of our sterling holdings
and the unilateral offer of a 6-month guarantee announced by Her Majesty's
Government aimed at stabilising the market. As a major holder the Hong
Kong Government of course has a very strong interest in the stability of
sterling, and friendly exchanges continue with the Treasury about what
we might do in our own and the general interest.
Another major problem for our manufacturers has been a world-wide
general shortage of raw materials. I have been impressed by the tremendous
efforts made by our importers. The trading and industrial organisations also
have played a most helpful role in seeking out raw material sources, whilst
the Commerce and Industry Department has assisted with official representations
and coordination of effort.
A further difficulty looms ahead in the obligation of the British
Government, as from the 1st January, to make its first move towards
harmonization with the common external tariff of the E.E.C. Under the
accession arrangements, which involved the exclusion of textiles and footwear
from Hong Kong in the extension to Hong Kong of E.E.C. generalised proferences
this would involve progressive discrimination by Great Britain against
Hong Kong in respect of these products. Of course the other side of this
coin is that this was the price paid by the negotiators to obtain acceptance
by the B.3.C. of Hong Kong's inclusion in all other generalised preferences.
Nevertheless