TNAG-0246-FCO40-282-Imports-of-textiles-from-Hong-Kong-to-UK-1970 — Page 52

This is of significance because the 6% growth rate

to which Hong Kong lays claim in terms of the Heads of

Agreement consists of (1) an automatic annual growth

factor of 1%, (2) a further growth factor of 5%, which

is not automatic but which applies in those sensitive

categories in which Hong Kong's exports in the previous

year reach 95% or more of the ceilings established.

It looke most unlikely that Hong Kong will be able

to claim more than the automatic 1% growth,for the first

year of the agreement at any rate. This is not there-

be

Prather

fore, the best of times at which to argue with the Board

of Trade that Hong Kong should be granted 6 rather than

3% growth. However, Hong Kong's chief concern continues

in primiple, to be to hold the UK to the Heads of Agreement and not

to allow that substantive document to be overtaken by

the 1968 negotiations.

2.

I recommend that in the first instance you should

ask for a meeting with the Board of Trade (Mr. Goldsmith)

Tight

at which the note attached should be used as a basis of

virtually certain

discussion. It is very likely that the Industries

Division of the Ministry of Technology would be invited

to send a representative.

Board of Trade to decide this.

But it would be up to the

Would

Kapt

open

3. If that meeting proved to be unproductive we should

still have our option upon to submit the matter to the

Minister.

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