TNAG-0345-FCO40-381-UK-and-Hong-Kong-talks-on-cotton-textiles-1972 — Page 151

COTTON TEXTILES

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Reference

THE HONG KONG POSITION

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folio 118 HKK 6/548/3C folio 169

HKK 6/548/3D

1. As stated in a summary of the meeting between Mr Grant and Mr Haddon-Cave on 6 December 1971, and

in an Executive Council Memorandam of 14 December 1971:-

(a)

(b)

The Hong Kong Government has always believed and frequently stated that a tariff was not a viable form of protection for Lancashire and would disturb

would disturb unnecessarily the traditional pattern of trade.

The Hong Kong industry believes that the imposition of both tariffs and quotas will involve both reduced profitability and limited access.

(c) HMG's oft repeated determination to abandon

quotas and switch over to a tariff policy. This has influenced traders' expectations and they had made their dispositions

accordingly (Many of these were non-quota holders).

(a) The recent United States retreat into trade

policy measures to solve monetary problems together with protectionist moves by the United States and other countries.

Л

The actions of the Americans (and particularly the ultimatum way in which they had been taken) on non-cotton textiles would be seen as being parralleled by the present actions of the British Government.

(e) HMG's oft-expressed concern about the current threats to the integrity of the world trading system.

(f)

(8)

(h)

While Hong Kong realised that textiles were treated sui generis the British Government's actions were another step towards protectionism.

Britain was doing an abrupt "about turn" and had not given the proposed tariff policy a chance to work (despite recent statements in Parliament to the effect that the triffs could not be reckoned to be inadequate before they were applied).

In his address when he assumed office, the Governor stated that one of his prime tasks was to do all he could to ensure that growth and expansion would continue. In the event, British policy was inconsistent with earlier British statements and this had led to strong criticism in the Colony that HMG's action "showed a complete absence of the moral obligation of the British Government

far the people of Hong Kong".

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