Kererence...
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PVED IN
V3.61
20 JAN 1972
1 X X X 6/56/1
Mr Hale (Commodities Department)
HONG KONG EXPORTS OF COTTON TEXTILES TO THE UK
1.
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36
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We spoke this morning on the telephone about Sir Murray MacLehose's telegrams Nos 72 and 73 - of which copies are attached. We agreed that telegram No 73 should not be distributed beyond the FCO.
2. I mentioned that Mr Ridley had spoken to me this morning about Mr Peter Blaker's request to see Mr John Davies. I said that it might perhaps be easier if such a meeting could be postponed until after we had had an opportunity of considering Hong Kong telegram No 72. If however Mr Blaker did see Mr Davies in the near future I agreed with Mr Kidley that all Mr Davies could say was that there were a number of reasons why HMG had taken the decision to have quotas as well as the tariff, that they had been fully aware of Hong Kong's interest in this matter and that anything Mr Blaker wished to say on behalf of Hong Kong would of course be very carefully considered.
3. I also mentioned that Mr Wilford had suggested that we might draft a letter from Mr Royle to a DTI Minister basing ourselves on Sir Murray MacLehose's telegram No 73. As Mr Wilford and I see it we should have no difficulty over the Hong Kong point made in paragraph 2 of telegram No 72 (Mr Ridley more or less agreed when I mentioned the point to him on the telephone). As regards swing into Group IV I am not quite sure where the figure of 24 million square yards comes from. Presumably what we should go for is a compromise between 4.6m and 10m. Mr Wilford tells me that CRE (ie Mr Sanders), think that it would be possible without difficulty to have some swing from Group II to Group IV. If you see no objection I could have a word with Mr Ken Price about this.
Cross swing in Groups II and III is perhaps the most difficult point. It is not at all clear to me why there can be cross swing in category IV (which I thought was the most sensitive part of the market) and not in category II or III.
4. If you agree to this general approach would you like me to draft? Sir Murray MacLehose is perhaps being a little optimistic in suggesting that we might be able to let him have an improved offer "within a week".
5. You will have seen from Sir Murray MacLehose's telegram No 70 about the Secretary of State's speech that he is proposing that paragraphs 3 and 10 of his original draft should be amended so as to present a specific defence of HMG's position vis a vis Hong Kong. He has also asked that he might have the final text "at least 3 days in advance of delivery". On this latter point I understand from the Private Office that it is the Secretary of State's practice to work on speeches almost up to the time of delivery.
CONFIDENTIAL
/In the
DD 896639 140609 500M 7/71 GM 3643/2
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