TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 28

ENTAL

C W Roberts Esq Private Secretary 10 Downing Street London SWI

Dear Christopher.

COTTON TEXTILE! IMPORTS

Wilis

Mu. Weebl Mr. Hale

DEPARTMENT OF TRADE AND INDUSTRY 1 VICTORIA STREET

RECEIVED IN REGISTRY No. 31

- 9DEC 1971

AKK6/540/3

LONDON SW1H OET

01-222 7877

123

M Lamber

8 December 1971 Enten

En

Lii

As requested I attach a copy of a statement on cotton textile imports which my Secretary of State would like to make in the House this afternoon. My Secretary of State is keen to make the announcement today largely because he wishes to be helpful to the Hong Kong Government. Mr Grant and Mr Royle have had a meeting with Mr Philip Haddon-Cave, Finance Secretary of the Hong Kong Government, to discuss the decision to keep quotas next year, and we have been told that it would be very helpful to him if the decision could be announced officially in London before he returns to Hong Kong first thing on Thursday (London time). The news is all over the papers in Hong Kong and Mr Haddon-Cave is bound to be closely questioned on his return. If the news is still formally confidential, he will be able to say nothing which would tend to damage the Hong Kong Government's credibility in representing the Colony's interests in the London talks. The long, Kong Government are not disputing our decision to keep quotas; making it easier for the Hong Kong Government to accept this helps us as well as the Hong Kong Government. Moreover they are asking us for further talks to discuss bigger and more flexible quotas. We shall almost certainly have to turn these proposals down, so it would be desirable not to turn down their request on timing the announcement as well.

Purely from this Department's point of view the news is breaking generally throughout the world and we are under considerable pressure to make an announcement; there is also a danger of increased forestalling the longer we delay. There is also the point that the longer we delay the more credit will be given to the textile industry support campaign and this will encourage protectionist pressures generally. There is also the fact that an announcement today separate from the debate on the tariff order tomorrow will give us a much greater opportunity for creating the best publicity.

S

For these reasons my Secretary of State hopes that the Prime Minister will agree to his making an announcement in the House this

afternoon, the Lord President has approved thisccourse of action.

CONFIDENTIAL