TNAG-0099-FCO40-135-Visit-by-Secretary-of-State-1967 — Page 8

CONFIDENTIAL

Note on Meeting between Representatives of the Hong Kong General Chamber of Commerce and the Right Honourable Herbert Bowden, C.B.E., M.P., Secretary of State for Commonwealth Affairs

on 7th March 1967

Present

Mr. Bowden

Sir Arthur Snelling, KCMG, KCVO,

Deputy Under-Secretary of State for Commonwealth Affairs

Mr. J.0. Moreton, C.M.G., M.C., Assistant Under-Secretary

of State, Far East and Pacific Department

Private Secretary

Mr. 0.G. Forster, M.V.O.,

Hon. G.R. Ross

Ilon. H.C. Fung

Mr. H.J.C. Browne

Mr. S.J. Cooke

Mr. M.A.R. Herries

Mr. T.Y. Wong

U.I./E.F.T.A./Hong Kong

Mr. Ross drew attention to the trade figures between Hong Kong and Britain which were more or less in balance. U.K. figures had risen steadily over the last three years while Hong Kong's had dropped very severely in 1965 due to the surcharge. He hoped the U.K. had turned the corner and asked if things did not improve whether there was any likelihood of quota.

2.

He also drew the attention of the Secretary of State to the damaging consequences for Hong Kong in the British market of dismantling internal tariffs within the E.F.T.A. In the field of cotton textiles, Portugal for instance, was not under quota restriction whereas Hong Kong was. Imports from Portugal into U„K. had increased drastically in recent months. As far as synthetic cloth was concerned, Hong Kong, which had formerly had a small margin of preference, now found that it suffered from a considerable reverse preference vis-a-vis E.F.T.A. countries. There was a feeling in Hong Kong that its interests were being neglected. This view was echoed by Mr. H.C. Fung and Mr. T.Y. Wong.

3.

The Secretary of State said that the Lancashire industry was in a worse way at present than it had ever been, and H.M.G. was under pressure to do something about it. Sir Arthur Snelling said that Hong Kong was able to export up to the limit of its quota, so Lancashire was the chief sufferer from Portuguese competition. H.M.G. had not yet quite decided what action to take, but certainly did contemplate some action if Portuguese imports continued to grow.

U.K./E.E.C./Hong Kong

4.

Mr. Herries stated that people in Hong Kong were nervous about the possible effects if and when Britain joined the Common Market. The Secretary of State said that Britain was genuinely anxious to join the Common Market, but there was still no certainty that it would be able to do so. There were some very great problems for Britain, which included safeguarding the interests of New Zealand and participants in the Commonwealth Sugar Agreement. Prime Minister and the Foreign Minister had nearly completed their round of probing talks with individual countries of the E.E.C.

The

CONFIDENTIAL

It would/