TNAG-0341-FCO40-377-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 173

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CONFIDENTIAL

SIR LESLIE MONSON'S

VISIT TO HONG KONG

APRIL

1972

COMMERCIAL PROBLEMS

Cotton Textiles

Brief No 1

ง

After discussions arising from our decision to retain

quotas as well as introducing tariffs, Hong Kong reluctantly

agreed not to pursue further their outstanding requests for

1972, but asked for early talks with HMG, before the negotia-

tions between the enlarged Community and Hong Kong. over the

alignment of our arrangements with Hong Kong and those of the

Six. During his visit to Hong Kong, the Secretary of State agreed that the DTI should be asked to arrange such meetings

as soon as possible. Mr Ridley of the DTI has agreed that when he visits Hong Kong at the end of April, he will discuss this problem. Hong Kong are naturally anxious that arrange- ments should, be agreed in good time so that their exporters may know where they stand in order to be able to enter into

contracts for 1973. Before visiting Hong Kồng, Mr Ridley will

have had discussions with Mr Ernst of the Commission.

}

As a

result of this meeting it is hoped that he will be sufficiently

informed of the EEC's attitude to have meaningful discussions

1

in Hong Kong.

Non-Cotton Textiles

1

2. The British textile industry have approached the DTI with a request for restraints on polyester cottons. Hong Kong sup-

plies 42% of UK imports of polyester cottons; only 5% come from

other developing countries. The remainder are supplied by ·

developed countries, against whom it is considered impossible. to impose restrictions (they would retaliate!). Hong Kong

prices are considerably cheaper than our own and the quality

/is better

CONFIDENTIAL