TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 29

4.

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THERE WAS SOME FURTHER RATHER CONFUSED DISCUSSION, BUT THE

MOOD OF ALL UNOFFICIAL MEMBERS WAS ONE OF DISILLUSION AND

FRUSTRATION OVER H.M.G.'S POLICIES, WHICH WILL NOT BE HELPFUL TO

THE DEFENCE CONTRIBUTION ISSUE.

5.

I WOULD SUGGEST THEREFORE SOME ADDITION TO PARA.5 OF THE

PROPOSED REPLY TO TAKE THIS EXPRESSION OF FEELING INTO ACCOUNT.

PERHAPS SOMETHING MIGHT BE ADDED AFTER THE SENTENCE ENDING

* 1

.......EXPORT TRADE AS FOLLOWS ''H.M.G. ARE ALSO AWARE OF

THE ADVERSE EFFECTS ON HONG KONG'S TRADE WHICH MAY RESULT

FROM THE IMPOSITION OF THE PROPOSED 15 PERCENT IMPORT TARIFF

ON COTTON TEXTILES ENTERING THE U.K., AND REGRET THAT THESE

MEASURES ARE NECESSARY. EVERY EFFORT WILL BE MADE HOWEVER TO

AVOID THE RE-IMPOSITION OF QUOTA RESTRICTIONS IN ADDITION TO THE

TARIFF AT LEAST UNTIL SUCH TIME AS THE U.K. ENTERS THE E.E.C.

AND IS REQUIRED IN CONSEQUENCE TO RECONCILE ITS EXTERNAL TRADE

POLICIES WITH THOSE OF THE E.E.C. THE DIFFICULTIES WHICH

HONG KONG FACES HAVE NOT YET, HOWEVER, DEVELOPED....... (CONTINUE AS IN PARA.5)''.

TRENCH

FILES

{

HKD

FED

COMODITIES D

DEFENCE D

COPIES TO:

MR D J J BRACK MR AF THORPE

TREASURY

F (AIR) 2 MOD

MR R J SMITH DOE

LAMBETH BRIDGE HOUSE

MR P D NAIRNE

MOD

MR R GEDLING

TREASURY

FPAD

ATD

CCD

PS

PS/PUS

SIR L MONSON

SIR S TOMLINSON

MR WILFORD

MR ROSE

MR GALLAGHER MR BOTTOMLEY

MR E STRETTON DOE

LAMBETH BRIDGE HOUSE

MR FH GWYNN MOD

MR P W RIDLEY MR.R W GRAY

DTI MILLBANK DTI VICTORIS ST

2 SECRET