CONFIDENTIAL
Foreign and Commonwealth Office London SW1
Mutant MR
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Miss CH Welch
Chemicals & Textiles Division
DEPARTMENT OF TRADE & INDUSTRY
Room 737
Millbank Tower
SW1
RECEIVED IN
REGISTRY No. 51
TODES1071
Your reference
Our reference
Date 10 December 1971
Dear Cherry, HKKG/548,
MR HADDON-CAVE'S CALL ON MR ROYLE: 6 DECEMBER
1.
Although I told Nick Billingham this morning that we are not circulating a record of this meeting, it might be useful to you if I set out the main points made by Haddon- Cave so that they are taken into account in the detailed work which you will no doubt be embarking on in preparation for the resumed talks with the Hong Kong delegation in January.
2. Most of the comments made by Haddon-Cave repeated those which he had made earlier on 6 December at his meeting with Mr Grant. In particular he stressed the difficulties for the Governor of the British Government's decision; that Hong Kong traders had worked on the assumption that there will be no quotas in 1972 and consequently large orders have been placed by non-quota holders; and that the Hong Kong textile industry must have freedom to maximise profitability, For tariffs to be imposed on top of an archaic quota system placed the Hong Kong textile industry in a straitjacket. All of this on top of the American agreements on non-cotton textiles. (On this Haddon-Cave said he found it hard to be told that one of the reasons for the change in our policy was these agreements.)
Yours sincenly
Jahn Soun
HEJ Hale
Commodities Department
сс
Mr Herzig CRE 2
DTI
Victoria St.
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