TNAG-0304-FCO40-340-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 38

TEXTILE BOSS:NO

FAITH

IN-UK China Mail

HONGKONG Chamber of

Commerce chairman Gerald Salmon today hit out at Britain's latest action, against Hong- kong's cotton textiles.

He said it proved Britain could not be relied on to stand by any future assurances.

Mr Salmon claimed the history of shipment controls of cotton textiles to Britain seemed to be "one long story of the British Government saying one thing and doing another."

Mr Salmon added: “As far back as 1958. the then Prime Minister asked Hongkong to give a voluntary undertaking to provide a period of necessary adjustments on either side.

"This period of adjustment has remained with us for 12 years.

VALUELESS

"More recently, the British Government assured us - in July, 1969 - and re-affirmed later, that a 15 per cent tariff would replace quota controis on January 1.1972.

"Hongkong industry and trade is now given only 22 days notice that these assurances are valueless."

Mr Salmon said the disruptive effects of this "sudden about turn" were bound to be serious for those firms which had already entered into firm contracts on what they believed was the new basis

• Trade Development Council boss Y.K. Kan described the British Government's decision to impose quotas on cotton textiles as a "retrogresse sep

He said it would create confusion.

The Governor. Sir Murray MacLencse also commented on the textiles issue when he opened the Chinese Manufacturers Association etismon in Wanchai last night.

Sir Murray was more optimistic. He expressed confidence Hongkong could weather changes poset by "protectionism."

10/12/71