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ed
We expect that Hong Kong would react strongly to the British Government's decision; and so it proved. The Colony's trade associations in particular have criticised our action as being a complete breach of faith; one that goes back on earlier undertakings by the British Government and clear proof that we ignore bur responsibilities to the Colony.
Against this background, we offered to discuss the change in policy with Hong Kong officials before the decision was announced.
Talks took place on 6 and 7
December. The main activity was to prepare an agenda for further talks. However the Hong Kong Delegation emphasised that their trade had taken decisions on the
En Bone-case's
basis of tariff only and consequently large orders had
taken on by
wanted addit.
addity freef
been placed by non-quota holders. They would therefore
queta to cover wch orders; wish compensation for hardship; some transfer ability
and groups
between categories in the quotas and an assurance that
Hong Kong would not suffer further as a result of duty- free competition from EFTA countries. While we
accepted these subjects for discussion at a further meeting, we made it clear that all these requests would raise very real difficulties for us.
[meet lirl
b. At the further meetings in January (14 to 18), Hong Kong pressed strongly for "hardship" yardage to exporters who did not enjoy a big enough quote.
lover orders held both by),
allocation under the system operated by the Hong Kong
andyman- quira holders
Than-guera
Government We reminded Hong Kong of our request to all
upplying countries at the time of our quota decision to
ficat pre-existing contracts as a first call on the 1972
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