TNAG-0304-FCO40-340-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 104

CONFIDENTIAL

RECEIVED IN

REGISTRY No. 51 200EC1971

HKKG/500/3

In clesty

153 P.A 1/12.

Ans Lahead of

12.

Mr Keeble

Sir Leslie Monson

Mr Royle

COTTON TEXTILES: HONG KONG

19 xii

162

со

B

to

C

PROBLEM

1. To reply to Sir John Eden's letter of 10 December to

Mr Royle.

ARGUMENT

2. Sir John Eden's letter, as with other letters from

officials in the DTI, stresses the difficulty of making concessions to Hong Kong when the talks with the Colony resume

in January.

However it is essential that we should be able

to demonstrate at the resumed talks that we have approached them seriously and in a meaningful way and that if we are unable to accommodate Hong Kong we can factually show why the acceptance of Hong Kong's proposals would seriously damage the

Government's new policy on cotton textiles. The need to fully

expose our hand is heightened by the telegram sent on

7 December by the various Hong Kong associations to the

"Minister of Trade and Industry" and the statement issued on

9 December by the Chairman of the Hong Kong General Chamber of

Commerce.

RECOMMENDATION

3.

I therefore submit the draft of a letter (the broad lines

of which have been agreed with Mr Wilford and Mr Laird) which

I RECOMMEND that Mr Royle send to Sir John Eden,

"H. E. J.

1. KALE

/cc

16 December 1971