TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 4

LARY

76

REF.

NCELLOR OF

THE EXCHEQUER

Commoditis Dept 80 cc. He bottomley / the Gallagher

ps/nd withian.

Treasury Chambers, Great George Street, S.W. I

01-930 1234

May 1971

th. Heath

o

They puts us in

Cat Hope plave bo

Thank you for your further letter of 11th May about the possibility of including in the Finance Bill a provision to allow temporary relief from duty for Commonwealth cotton textiles shipped under the quota arrangements.

I have considered the matter further and fully appreciate the points you and Alec Home have made. In my view our position on the Hong Kong defence contribution is a generous one and I attach importance to securing the figure which Alec mentions in his letter. Nevertheless I take the points you have both made. and agree that legislation would be desirable.

I should like to avoid a final commitment to the introduction of this new clause until we can see how the Committee Stage of the. Finance Bill is going. But I am prepared to agree that a clause should now be drafted with the intention of introducing it during the Committee Stage, provided that we have not run into unexpectedly rough water. If, as I hope, it proves possible to bring it forward, I should of course look to you to deal with it, and any amendments to it.

I am copying this letter to Alec Douglas-Home.

ON

R.G.STRY.No.51

NXK

1

10/9

1

The Rt. Hon. Michael Noble, M.P.,

ANTHONY BARBER

CONFIDENTIAL