TNAG-0345-FCO40-381-UK-and-Hong-Kong-talks-on-cotton-textiles-1972 — Page 173

UNITED KINGDOM TEXTILE POLICY

ANNEX I

I

DISCUSSIONS WITH REPRESENTATIVES OF HONG KONG GOVERNMENT ABOUT THE CONTINUATICH OF QUOTA RESTRICTIONS IN 1972

NOTE OF MEETING HELD ON 6 DECEMBER 1971 AT VICTORIA STREET

PRESENT:

D.T.I.

Mr P Ridley

Miss L Lowme

ст

Miss C Welch

ст

Miss V Walters CT

CT (in the chair)

Hong Kong

Mr CP Haddon-Cave Mr E P Ho

Mr DM Sellers

M: PKC Worg

Miss J Elliott CRE1

Mr J Horzig

CRE

F.C.O.

Mr M Laird

HK Dapt

Mr J Hale

Commodities

Mr P Kiang

Mr K Young

Mr R Mowforth Commodities

The Hong Kong delegation had met the PUSS for Trade (Mr Grant) immediately prior to the meeting. Opening for Hong Kong, Mr Haddon-Cave expressed the delegation's surprise at the Minister's emphasis on unemployment as the key factor behind the change in policy, particularly since the "doubling" of unemployment figures for Lancashire to which Mr Grant had referred in the debate apparently amounted only to an extra 2,000. Mr Ridley said that the Government's main anxiety was that the the situation could deteriorate further at a time when the economy was not picking up as quickly as had been hoped, but that there were other complicating factors in the requirements of aligning with EEC policies in 1973 and the risks of fall-out from the Nixon measures.

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Mr Ridley suggested that the "uncomfortable reminders" of HIG's earlier statements to Hong Kong about the introduction of the CPA tariff in 1972 had to be considered in the context of the pressures exorted by Hong Kong at the time of the Dorward-Carey talks to retain the quota system and abandon the tariff. It was nor evident that quotas alone would not be sufficient to contain the situation; and the Crosland statement had in any case reserved HIG's position with regard to re-introduct- ion of q.r. where necessary. We had thought seriously about keeping to the letter of the Crosland formula, but had concluded that ad hoc action to protect particular products would lead to uncertainties for suppliers, importers and domestic manufactur- ers alike. We had also considered establishing a global systea (based on the present bilateral and global quotas rolled together) but had rejected this in favour of preserving the position of traditional Commonwealth suppliers bearing in mind the requirements of EEC entry in 1973.

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