TNAG-0337-FCO40-373-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster--Sir-Geoff-1972 — Page 35

CONFIDENTIAL

5. The UK approach received no publicity in the Colony and it

is suggested that Mr Rippon should not raise the subject.

6.

If questioned by the press he might say he understood that

talks had taken place in August and were expected to resume

again shortly.

7. If the subject is raised by officials or by Unofficial

Members of the Executive or Legislative Council (the Textile

Advisory Board were involved in the recent talks) Mr Rippon

could say that HMG had carefully considered the interests of

the Hong Kong industry but these had to be weighed against the

interests of UK industry. Imports from Far Eastern sources,

especially Hong Kong, were disturbing the UK market with serious

effects on employment opportunities and on the ability of UK

industry to achieve viable levels of production. Mr Rippon

could also point out that following the American agreement in

1971 with the four Asian suppliers, Britain remained the only

major developed country which had no restraints of any kind on

imports of non-cotton textiles except from Japan. (All

(All the

EEC countries appear to limit imports by one means or another

although West Germany applies no restrainst to Hong Kong.)

EFFECTS OF UK JOINING THE EEC

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8. In practice, Hong Kong's prospects of increasing exports

to Europe are determined by the restrictive policies of the

EEC and its Member States, rather than by the competitiveness

of Hong Kong's products.

19.

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CONFIDENTIAL