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considerable lengths to resist domestic pressures to
maintain a balanced policy in the interests of Hong Kong.
HMG has not acceded to strong demands from the UK
knitwear and cutlery industries for better protection
against imports, particularly imports from Hong Kong.
Suggestions (both from UK industry and from some of our
Community partners) that there should be comprehensive
controls on clothing imports have also been resisted.
Revised concluding paragraphs
The Councils will realise what a profound disappoint-
ment it was to the UK that a Japanese bid for the mass
transit contract has been preferred to the very carefully
prepared offer made by the Anglo-Italian consortium.
This was an instance in which the considered judgement of
the Hong Kong Government presented some embarrassment and
difficulty for us, since we shall have to defend Hong
Kong's right to make its own decisions on a matter of such
evident interest to British business circles.
At the end of the day, both economies have a vital
stake in continued growth. In the current difficulties
facing the world trading community this identity of
concern can be presented as transcending the minor
complexities in our relations which too easily capture
the limelight.
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