with o
Mr Wilford
Sir L Monson
UK TEXTILE POLICY HONG KONG
PROBLEM
1. The Governor of Hong Kong has asked for consultations in London in late January or early February on the imposition of the tariff on cotton textiles imported into Britain with effect from 1 January 1972. He proposes an agenda as follows:
a. The probable effects on Hong Kong of implementation from
1 January 1972 of the policy regarding imports of Common- wealth cotton textiles which was announced by the then President of the Board of Trade on 22 July 1969;
b. The further implication for Hong Kong of this policy
in the light of Britain's application to join the European Economic Community;
c. The case for reconsideration of the implementation of
this policy in view of the uncertainties surrounding trading conditions as a result of the EEC application;
d. Other measures which might alleviate the adverse effects
on Hong Kong trade which are anticipated.
RECOMMENDATION
2. Although it would seem unlikely that any change in the decision to impose a tariff on cotton textiles from 1 January 1972 can be agreed, I recommend that the Governor's request for consultations should be accepted and that Mr Bottomley should be asked to take the chair at the consultations. Draft telegram to Hong Kong is attached. This has the agreement of DTI and Commodities Department.
BACKGROUND
3. At the third session of consultations with Hong Kong Government officials on 24 November 1970, the Governor raised the question of the application of the new tariff on imports of Commonwealth cotton textiles in the United Kingdom. He proposed that the decision to impose the tariff should be reconsidered and perhaps put off until 1973 when it should be known whether Britain was definitely entering the EEC. The Governor was told that the United Kingdom had not expected to enter into full consultations on this matter at the meeting, but these could be held later if so reques- ted by Hong Kong.
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