TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 87

Cexplies Suipped against quo las in

971, but

arriving in Britain in 1972.

4.

972,

A decision int to give relief from Duty for the fire hum monits

the Chancellor of refused to f→ give on muincy place in the Finance Bill world

the Exchequer's

sjposition would involve would be

bull te Dü

so strongly, by India and Pakistan).

which

mattr

inevitable,

badly received in Hong Kong (and possibly, though not

Furthermmon the ocasion infusi

じ The Hore so because

of the current negotiations with the Colony over the

their

نا

size of defence contribution for the next five years.

These negotiations are not going well. We have been

advised by the Governor that one of the main reasons for this is "the resentment which has accumulated over the

last 15-20 years and more especially over the last 8

years or so, over actions by HMG of various kinds which

have appeared locally to constitute a disregard for

Hong Kong's needs, rights and vital interests". The

Governor has urged, more than once, that everything possible should be done by HMG to counteract this feeling.

RECOMMENDATION

5. The Chancellor of the Exchequer's main argument for

excluding tariff relief from the Finance Bill seems to be

for legislative rather than financial reasons; the

financial aspects, as they affect Hong Kong in the cotton textiles and defence areas are set out in the attached

of a

draft letter which I recommend that the Secretary of State send to the Chancellor of the Exchequer; Hong Kong and South Asian Departments agree with this

recommendation.

come

Ad-

an awenend

moment-

draft and the

CONFIDENTIAL

мож

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