TNAG-0345-FCO40-381-UK-and-Hong-Kong-talks-on-cotton-textiles-1972 — Page 85

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had committed themselves to forward contracts in the belief that

we should adhere to the policy which we had announced. We

now have to accept the consequences of the policy change,

but our sympathy for the exporters can be mitigated by the

fact that it is they who, by leaping in with massive forward

contracts for the British market, have brought about the

collapse of the free entry policy. They too must now accept

the consequences.

4. This issue is primarily one of UK-Hong Kong relations and

I would not wish to dissent from the proposed letter to

Sir John Eden.

27 January 1972

c.c. Mr Wilford

Mr Laird -

Mr Hale

CONFIDENTIAL

ABC RS

HBC KEEBLE