TNAG-0304-FCO40-340-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 145

CONFIDENT LAL

Reference

2.

Mr Haddon-Cave made it quite clear that Hong Kong had no wish to attempt in any way to persuade HMG to alter the decision to have quotas as well as the tariff. His only concern was to secure whatever arrangements were possible to ameliorate the situation so far as the Hong Kong industry was concerned.

3.

In reply Mr Ridley made the following points:-

(a)

(b)

c)

For political and technical reasons it was

just not possible to consider "decalaging" the new tariff.

It would be extremely difficult to give special concessions to Hong Kong alone. Moreover if modification to the arrangements were made to suit the Hong Kong industry other modifications might have to be made to suit other Commonwealth industries in particular which might adversely affect Hong Kong's prospects in the British market.

Looking to the future (after 1972) HMG would not be a free agent. We would have to consult our partners in the EEC.

4. In spite of what Mr Ridley had said Mr Haddon-Cave stuck to his guns. The Hong Kong Government had not yet had an opportunity of consulting the Hong Kong industry. Whatever the risk that little or nothing might come out of the proposed talks in January there had to be agreement to have those talks. Without such an agreement Sir Murray MacLehose's position would be impossible. He argued that Hong Kong was in a special position by virtue of its status as a Crown Colony. He found it difficult to understand why it would not be possible for HMG to make special arrangements for Hong Kong. In any case if, as a result of modifications being made to help Hong Kong, other modifications had to be made to help other countries this was a matter for Hong Kong and not HMG to worry about. Hong Kong had repeatedly stated that they had no wish to have a preferential position in any market; all they asked was that they should not be discriminated against.

10 December 1971

n.

E

E O Laird

Hong Kong Department

2.

CONFIDENTIAL

DD 737719 557664 500M 2/71 GM 3643/2