TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 17

CONFIDENTIAL

Bill, so that if we accept the decision of the Treasury

Winister we thus would make the overseas suppliers face

an even worse situation at the time of the changeover

than they had expected.

This will obviously sharpen

their objections considerably.

4. The timing is especially difficult for our relations

As you know,

with two of the suppliers. The Indians are being most

گناه

difficult about giving us the necessary waiver of the

with them

Trade Agreement in order to introduce the textile

duties; and the negotiations with the Hong Yong Govern-

ment on the size of their defence contribution for the

next

5

years are both difficult and making little

progress.

In part, the lack of progrese can be laid

ver a period

to the resentment that has accumulated

of years regarding actions by HMG which the colony-

consider have disregarded Hong Yong's needs, rights and

vital interest.

5. It is certain that if we are unable to give temp-

at

orary relief from the new tariff, the Governor of

Hong Zong will find it even more difficult to secure

the agreement of the urofficial members of his

Legislative Council to the proposed contribution towards

the cost of keeping armed forces in the Colony.

6. I therefore home that it will be possible to

reconsider this question in the light of the factorse

I have set out above. I fully understand the problema

that a new clause would presert for "ony Barber but

these seem to me to be outweighed by the considerable

advantages we would obtain if temporary relief is in

fact given to the developing countries in the Commonwealth

freference Area.

7. I am sending a copy of this minute to Tony Barber

and Michael Noble.

CONFT E TIAL