CONFIDENTIAL
5.
Another aspect which may be relevant is that HMG has recently asked Hong Kong to impose quite drastic 'voluntary' restraints on her exports of polyester cotton fabrics and clothing to the UK. This strikes directly at one of Hong Kong's most promising export lines and is calculated to aid UK domestic industry at the expense of Hong Kong's. As this reverses the policy of "trade, not aid" one could make out an independent case for UK aid to compensate Hong Kong for the restraints imposed on her exports. Indeed, it is not so long since the ODA supported a similar proposal to give India £10 million additional aid (with no strings attached) as compensation for the 15% textile tariff introduced in January 1972.
3
BA.Taren.
B A Tarlton
25 September 1972
Economists Dept
Copies to:
Mr Kerr (FPAD)
Export Promotion Dept Cultural Relations Dept A & TD (Mr Cromartie) Mr Armstrong (DTEU)
CONFIDENTIAL
Page 90Page 91
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