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PRIORITY
EN CLAIR
FM HONG KONG 093650Z
UNCLASSIFIED
NEUTRAL/
RECEIVED IN
REGISTRY No. 51
13L
HKILL/58/2
TO PRIORITY FCO TELNO 923 OF 9TH DECEMBER 1971.
MY I.P.T. PARA. 4.
FOLLOWING IS TEXT.
LAST
REF.
432
BEGINS
NEXI
REF.
740
AND NOW THE UNITED KINGDOM HAS DECIDED TO CONTINUE THE QUOTA
RESTRICTION ON COTTON TEXTILES FROM THE COMMONWEALTH PREFERENCE
AREA IN ADDITION TO THE TARIFF BEING INTRODUCED ON 1 JANUARY. THIS
IS CERTAINLY NOT A HAPPY DEVELOPMENT FOR HONG KONG, BUT IT IS NOT
A MORTAL BLOW. WE SHALL STILL BE GUARANTEED IN 1972 A QUOTA WHICH
ALLOWS HONG KONG ALONE TO SUPPLY AS MUCH AS ONE TENTH OF ALL THE
WOVEN COTTON TEXTILES BOUGHT IN THE UNITED KINGDOM, WHILE OUR
KNITTED GOODS WILL STILL BE SUBJECT TO NEITHER TARIFF MOR QUOTA: THE
UNITED KINGDOM WILL REMAIN AN IMPORTANT AND PROFITABLE MARKET FOR
US.
BUT THE ABRUPT CHANGE AT THIS LATE DATE IN CONTRADICTION TO
PREVIOUS STATEMENTS WILL CAUSE FRUSTRATION TO MANY, LOSS TO SOME,
AND DISAPPOINTMENT TO ALL.
THE FINANCIAL SECRETARY HAS FORCIBLY EXPRESSED THIS VIEW IN
LONDON. FURTHER TALKS HAVE BEEN AGREED TO I WILL BE HEARING
FURTHER FROM HIM ON HIS RETURN.
WE KNOW THE BACKGROUND. WE KNOW THAT AT THIS TIME BRITAIN HAS
HER PROBLEMS AND WE HAVE SOME SYMPATHY WITH THEM. THEY DO NOT
FACE AN EASY SITUATION.
BUT WHAT WE MUST ASK OF OUR FRIENDS AND MAJOR TRADING
PARTNERS AND THEIR BASIC GOOD WILL FOR US IS NOT IN DOUBT
IS THAT THEY STAND BY US IF OTHERS WITHOUT THEIR PROBLEMS FOLLOW
WHERE THEY, IN THEIR DIFFICULT PREDICAMENTS, HAVE LED.
ENDS
MACLEHOSE
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES D
HK D
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