TNAG-0345-FCO40-381-UK-and-Hong-Kong-talks-on-cotton-textiles-1972 — Page 149

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fr Lonɛon

TOD KONG TITILES

HEETING

ITH MR R HW BULLOCK, DEPUTY

CSLITARY, DTI, AT 3.30 pm ON FRIDAY 7 JANUARY ROCK 1261,

HOUS, "CUTH

1.

You may care to use the following points hen ¿ou see Mr Bullock tomorrow:

(a) Hong Kong bitterly resented the way the Americans

recently imposed restrictions on imports of non- coʻton textiles. Our action on cotton textiles seems to have aroused even greater pitterness, the more so because Britain as the metropolitan power was expected to have a higher rand than the USA for the interests of the Colony (the reaction of the Textiles Advisory Board is summarised in paragraphs 15- 18 of the attached copy of a memorandum for xecutive Council).

(b) Following the often-repeated statements that Britain

would use only tariffs in 1972, Hong Kong traders placed orders accordingly; many of these veru for the account of non-quota holders.

Sir

(c) Our decision has created particular difficulties or

the Governor who has only just been appointed. Murray MacLehose sail in his address at the time he assumed office that one of his prime uks would be to do all he could to ensure that growth and expansion would continue. He has been faced with an unexpected and very sudden crisis where British policy has been inconsistent with earlier British statements. This has led to very strong criticism in the Colony that our action has stown a complete absence of the moral oiligation the British Government she ld have for the people of Hong Kong.

(a) In his letter to Sir John Eden Mr oyle commented that -

"HG have a direct and internationally incoguised responsibility for ing Kong which they do not have for the other major overseas suppliers and it would be most difficult for us to accept at nothing could be done by way of transitional arrangements to help Hong Kong simply because corresponding concessions would have to be made to other major suppliers. is strongly felt in Hong Kong that we should also not forget that Hong Kong is a colony and as such is not represented in Parliament like Lancashire."

It

CONFIDENTIAL

/2.

1/11/1/72.