TNAG-0334-FCO40-370-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 205

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quotas.

placed with other countries

We argued that many orders would not be.

accommodated.

Nevertheless we said that if HMG

decided that in principle we could allow any excess

licensing for pre-existing orders, we would give

sympathetic consideration to Hong Kong's claims.

16. We said we were also prepared to discuss with

British industry and the EEC, and thereafter to submit

for Ministerial approval, certain amendments and

modifications to our Cotton Textile Agreement with Hong

Kong. Although these modifications would not have

given Hong Kong a bigger quotather/in aggregatefor in-specific-products] they would have permitted

greater flexibility in transfer between categories.

We also offered to redefine garment quota headings to

bring them more into line with Hong Kong's agreement

with the EEC (again a method allowing greater

flexibility to Hong Kong).

17. Mr Haddon-Cave agreed with these proposals but his

proposals care

trade advisers did not. The letter-is to be considered

by the various Hong Kong bodies, including the Executive

Council.

LEEC