TNAG-0441-FCO40-506-Visits-of-leading-personalities-of-Hong-Kong-to-UK-1974 — Page 77

CONFIDENTIAL

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of shipping

European partners to increased textile imports from countries

such as Hong Kong. But we must be given discretion to pick

the most auspicious occasions and tactics for pursuing this.

12. We have also done what we can to ensure that Hong Kong's legitimate needs for oil supplies are taken into account, although we cannot of course isolate Hong Kong from the general

world situation on oil. Perhaps most important of all, at some

cost to our relations with the Chinese, we have given them no

encouragement to pursue the proposal of establishing a Chinese

Representative in Hong Kong.

13. There is a further range of issues, which may not be

common knowledge, where HMG has gone to 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.

14. On the other side of the coin HG hus sometimes had cause

to be disappointed. The decision that a Japanese bid for the

mass transit contract has been preferred to the very carefully

prepared offer made by the Anglo-Italian consortium was a

profound regret to the UK.

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