TNAG-0304-FCO40-340-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 108

The Minister for Industry

FROM: Sir John Eden Bt MP

Meu

/cc. Mr. Keeble

DEPARTMENT OF TRADE AND INDUSTRY

1 VICTORIA STREET

LONDON SWI

01-222 7877

153

15%

Anthony Royle Esq MP

Parliamentary Under Secretary

of State for Foreign and Commonwealth

Affairs

Downing Street

LONDON SW1

10

December 1971

Dear Tony,

HONG KONG TEXTILES

I accepted yesterday your suggestion to delete from the letter which Philip Ridley here is to send to Haddon-Cave in Hong Kong (the draft of which had in fact been agreed between Ridley and Haddon-Cave) the phrase stating that the UK could not undertake in the present situation to accede to any of Hong Kong's proposals for modifying the quota arrangements in 1972. I did so because you urged that the amendment would make things easier presentationally for Hong Kong.

I did not, as I emphasised to you on the telephone yesterday, imply any change in my conviction that to accommodate the Hong Kong proposals would be extremely difficult.

already coming under pressure from other countries also to modify the existing quota arrangements next year and once we started giving way the consequences could easily be an increase in total imports or imports of particular products such as to undermine the stabilisation of the UK market which the decision announced in the House yesterday is intended to achieve. I hope that it will be understood in Hong Kong that we are not backing away from the statement made in the talks between officials on 7 December that we are not committed to any concessions in January. It could make the latter talks a lot harder if the Hong Kong side entered them with false expectations.

yours an. Jonn.