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TO LONDON TO MAKE IT CLEAR TO MINISTERS THAT THE HONG KONG INDUSTRY
FUNDAMENTALLY OPPOSED THE TARIFF PROPOSALS. IT WAS VERY DIFFICULT TO MOVE THEM FROM THIS BUT IN THE END THEY AGREED TO A COMPROMISE PROPOSAL THAT A TELEGRAM EXPRESSING THEIR OPPOSITION SHOULD BE SENT BY THEM TO THE PRESIDENT OF THE BOARD OF TRADE ON BEHALF OF ALL TEXTILE ASSOCIATIONS SEMI COLON AND THAT IT SHOULD BE GIVEN TO THE PRESS IN HONG KONG AND TO NEWS AGENCIES,
5. AT THIS STAGE SUSPICION WAS SO INTENSE THAT IT WAS DIFFICULT TO GET MEMBERS TO ADDRESS THEMSELVES TO THE REASONS FOR THEIR OPPOSITION. THESE, AS FINALLY OBTAINED, ARE SET OUT IN MY TELEGRAM 567 WHICH, AS SUGGESTED IN PARAGRAPH 3 OF YOUR TELEGRAM 466, HAS BEEN SENT IN A FORM WHICH CAN BE GIVEN NEUTRAL DISTRIBUTION, 1 ASSUME THAT YOU HAVE ALREADY USED. THE MATERIAL IN MY TELEGRAM 511
AND SO I HAVE NOT REPEATED IT ALL,
6. 1 AM AFRAID THAT ONE RESULT OF ALL THIS HAS BEEN ONCE AGAIN TO DAMAGE THIS GOVERNMENT'S REPUTATION WITH ITS MOST IMPORTANT INDUSTRY, 1 RECOGNISE THE DIFFICULT POSITION IN WHICH YOU, YOURSELF, HAVE BEEN PLACED AND MUCH APPRECIATE YOUR EFFORTS ON OUR BEHALF. BUT THIS HAS BEEN A MOST UNFORTUNATE EPISODE, AND EVEN THOUGH NO DOUBT THE HEAT WILL TO SOME EXTENT DROP OUT OF IT FOR THE TIME BEING ONCE THE ANNOUNCEMENT IN PARLIAMENT IS MADE, NEVERTHELESS THE INDUSTRY WILL NOT FAIL TO GUESS THAT WE HAVE BEEN LESS THAN HONEST WITH THEM TODAY, AND IT WILL NOT BE EASY TO RESTORE THEIR CONFIDENCE
N US, WHICH WILL MAKE SUBSEQUENT DEALINGS WITH THEM OVER THIS WHOLE ISSUE THAT MUCH MORE DIFFICULT.
SIR D TRENCH
FILES
HONG KONG DEPT.
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