TNAG-0332-FCO40-368-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 38

PS/72/11

21/1602

CONFIDENTIAL

суда Crassza

En

DEPARTMENTAL SERIES

OFFICE OF THE SECRETARY OF STATE FOR FOREIGN

AND COMMONWEALTH AFFAIRS

Is

No.11

Record of a Meeting at Government House, Hong Kong at 7 pm on 13 February, 1972

Present:

The Rt Hon Sir Alec

Douglas-Home, KT, MP.

Sir Stanley Tomlinson

Mr JA N Graham

Mr E O Laird

Mr J G Leahy

His Excellency Sir Murray

Maclehose, KCMG, MBE, (Governor of Hong Kong)

Lt Gen Sir Richard Ward, KCB, DSO,

MC, Commander, British Forces.

The Hon Sir Hugh Norman-Walker KCMG, OBE (Colonial Secretary)

The Hon C P Haddon-Cave (Financial

Secretary)

Mr N JV Watt, OBE (Director of

Information Services)

Mr G A Higginson

Textiles

Sir Alec Douglas-Home asked about the present negotiations between London and Hong Kong on textiles. Sir Murray Maclehose explained that this was a relatively small matter in the overall field of textiles, but the Department of Trade and Industry's latest offer had conditions attached which Hong Kong could not accept. He saw no point in reopening negotiations as there had been two lots of talks already. This was an unreasonable amount of time to spend on so limited a matter and tended to sour rather than improve relations. We could not sacrifice certain well tried and accepted principles.

Sir Alec Douglas-Home asked how this situation had arisen. Mr Hadden- Cave said Her Majesty's Government's move affected Hong Kong in two ways:

2.

(a)

(b)

in the short term: in the expectation that quotas were coming off, many manufacturers had accepted orders in excess of quota rights;

in the longer term: the United Kingdom/Hong Kong quota arrange- ment was constructed some years ago in a tariff-free situation.

1

CONFIDENTIAL