TNAG-0169-FCO40-205-Exports-of-textiles-to-United-Kingdom-1970 — Page 198

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

In fact, as the end of 1968 approached, the

Governor, who had to allocate the 1969 quota in

order to allow trade to proceed normally, was

obliged to telegraph his assumption that the

proposals in the exchange of telegrams and his

despatch would eventually be confirmed. This is

not a background against which it would be

possible, in equity and good faith, to "with-

draw" anything, when Hong Kong has voluntarily

restrained her trade with us, to her own detri-

ment, for a year already in accordance with the

agreement.

Background

A whole series of commercial issues between

HMG and the Hong Kong Government and Industry is

unfortunately combining to cause growing resent-

ment on the part of the Colony's industry

against the Board of Trade. The argument is not

that the Board of Trade can be blamed for these

issues, only that if the Colony is not

generously treated on this occasion yet another

contentious issue will be added to the sequence

and the Governor's political problems thereby

increased.

There has been,

(1) the sheeting agreement itself.

(2) Board of Trade intervention between Hong

Kong and trading partners with whom the

Colony wished to reach restraint agreements

in her own interest.

(3) most recently the decision to impose a

tariff on Commonwealth textiles, which

Hong Kong thinks was taken without proper

consultation.

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