TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 39

Mr Keeble

COTTON TEXTILES: HONG KONG

I have asked Mr Grant's Private Secretary to let you (and the other people attending Mr Royle's meeting at 4.45" today with the Hong Yong team) have urgently the record of

the meeting this morning with Mr Grant.

2. It might be useful, however, for you to have the

following summary of the meeting.

3.

After Mr Grant had given a general explanation of the

British Government's reasons for their decision to have

tariffs and quotas in 1972, Mr Haddon-Cave summarised the

Hong Kong position as being made up of five factors: -

(a) the often-repeated statements that Britain would

use only tariffs in 1972. Traders had placed

orders accordingly; and many of these had been

for the account of non-quota holders;

(b)

the increasing practice of countries taking

actions in the trade policy area to cope with

what were essentially monetary issues;

(c) the actions of the Americans (and particularly

the ultimatum way they had been taken) on

non-cotton textiles would be seen as being

(a)

paralleled by the present actions of the British

Government;

while Hong Kong recognized that textiles were

treated sui generis, the British Government's

actions were another step in the spread of

protectionism;

CONFT DENTIAL

118

t

: