TNAG-0173-FCO40-209-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 130

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o foll ring is extracted from Cable No. ISD98 and ISD99.

2007 COA Fon Long Long on 25.7.69.

ISD98 On the assumption that the text of the statement by the President of the Board of Trade is as expected.

Here are commenta nade in Hong Kong: 1) Statement made by C. P. Haddon- Cave, Acting Financial Secretary; 2) At the request of J. Cater, Executive Director of the Trade Development Council; 3) At the request of the British Trade Commission in Hong Kong.

1) C. P. Haddon-Cave said, "Hong Kong must naturally regard the President's statement in a very serious light. It proposes a fundamental change in our conditions of trading with a major market which takes more than a quarter of Hong Kong's cotton textile exports.

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"The textile trade, in their telegram to the President of the Board of Trade last Saturday, have already expressed their anxieties over such action. Ever since the report of the British Textile Council, which made these recommendations, the Government, in consultation with the Textiles Advisory Board and without guidance as to the British Government's attitude, has been studying their possible implications."

"We had already passed on the results of this study to the British Government and had left them in no doubt of our concern should the report's recommendations be accepted. We have noted the assurance given by the President of the Board of Trade that he will now initiate discussions with the Governments of those Commonwealth countries affected; and certainly look forward to putting across our views."

"The fact that it is not intended to apply the proposed tariff duties until January 1972 means that we have two and a half years of trading ahead of us under present conditions and a great deal can happen in that time."

"Although we should not in any way minimise the seriousness of this situation we should not, on the other hand, get it out of perspective. Our cotton textile exports to Britain amount to less than seven per cent of our total exports.

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"Today's announcement is not going to have any immediate drastic effects on us. Our present arrangements, which last until the end of 1970 will run their full course and the President envisages that they would be extended until the end of 1971. During this intervening period we would not only make our views known to the British Government and seek, possibly, some mitigation for those sectors of the trade likely to be adversely affected, but the industry will have an opportunity to adjust to the new situation."

The Acting Financial Secretary added that Government was advised officially early on Tuesday morning of the fact that a statement wąs to be made in Parliament later that day and was given an outline of its contents. A full text of the statement was received a few hours before it was delivered.

ISD99

2) Executive Director of The Trade Development Council Jack Cater, was interviewed by Radio Hong Kong and said that the news came as a shock. "We had of course received a copy of the Textile Council Report and studied it as indeed Government had studied it. But the implications at the time certainly were that there would be ample time in which to react to this Council Report and to possible actions which the British Government might take."

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