TNAG-0298-FCO40-334-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 149

BY BAG

SAVING TELEGRAM

FROM WASHINGTON

TEL. NO. 11 SAVING

TO FOREIGN AND CONMONWEALTH OFFICE

5 FEBRUARY 1971

PA.

UNCLASSIFIED

NEUTRAL

ADDRESSED TO FOREIGN AND COMMONWEALTH OFFICE

TELEGRAM NUMBER 11 SAVING DATED 5 FEBRUARY 1971 REPEATED

FOR INFORMATION SAVING TO:-

US TRADE POLICY

TOK YO

HONG KONG

UKDEL EEC BRUSSELS

UKMIS GENEVA

1. COPIES OF THE ANNUAL REPORT OF THE COUNCIL OF ECONOMIC ADVISERS

DATED 30 JANUARY HAVE BEEN SENT TO TREASURY AND TO THE

DEPARTMENT OF TRADE AND INDUSTRY, AND WE ARE REPORTING SEPARATELY

ON THE MAJOR PART OF THE REPORT, WHICH IS CONCERNED WITH THE

DOMESTIC ECONOMY. THIS SAVINGRAM SUMMARISES THE PASSAGES

CONCERNED WITH INTERNATIONAL TRADE.

BACKGROUND

2. POINTING OUT THAT THE RELATIVE IMPORTANCE OF TRADE TO THE US

ECONOMY INCREASED (SIC) IN THE 1960'S, THE REPORT SAYS THAT THE

LIBERAL TRADE POLICIES FOLLOWED SINCE WORLD WAR II NOT ONLY

EXPANDED AMERICA'S EXPORTS AND IMPORTS BUT CONTRIBUTED TO A

HIGHER STANDARD OF LIVING. ADJUSTMENTS REQUIRED IN CERTAIN

INDUSTRIES, HOWEVER, ACCOMPANIED BY PROTECTIONIST ACTIONS ON THE

PART OF SOME OF THE US TRADING PARTNERS AND BY THE REDUCTION IN

/THE

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