TNAG-0246-FCO40-282-Imports-of-textiles-from-Hong-Kong-to-UK-1970 — Page 72

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wide sheeting and sheets which they are entitled to send here under the "loads of Agrocmond" was unjustified. I recall very clearly that shortly after this additional restriction was imposed there were complaints in the Press of a ghortage of sheeting and shoots and allegations that domestic prices had risen to record lcvels. The latter part of para.3 of your minute appears to be caying that the LTA is a nonsense. 'This, of course, 10 strongly the American vicw. Cur only answer to this is that they have got all the cotton items under restraint and one must look at injury ca manmade fibre items separately. You cannot have it both wayo,

7. As for paragraph 4 you will at least concede that under the terms of the LTA virtually all importing governmento permit

the restraints to bo odnåndstored at the exporting end. Our situation is no different fren that of other major importers. It is certainly true that Hong Kong regards what it calls "acco53 rights" as some compensation for having to submit to export restraints at all. And I do not think this is unreasonable. The plain fact is that all import restrictions result in distortions of one kind or another. One of the perennial complaints about the administration of apple quotas (which is done at this cnd) is that fortuitous pròfits are handed on a plate to the firms which are fortunate enough to be granted a share in the limited quotas and we have seriously considered over the past year or co whether to replace the present arrange- ments with an auctioning systca.

&.

Finally, in paragraph 5 you start off by saying "Many of the foregoing argumento vero accepted by the then President of the Borad of Trado

I have looked up the papere which were submitted at the time and I am confident that none of the foregoing arguments were accepted by him at that time. They were never even put to him.

9. I should not like you to leave your present job without somo expression of appreciation on the part of CRE1 for the close interest which you have always taken in our mutual concerns and the enormous industry with which you have consistently challenged all received notions and shibboleths. Although we have

frequently failed to see eye to eye on many questions we have always appreciated your constant concern to find solutions to the intractable range of problems which crop up in our commercial dealings which are in British interests.

"And still they gazod, ond still their wonder grow

That one small head could carry all he knew."

0. COLDSMITH 29th April 1970