presentationally very important for him to be seen to have tried. We should also alert the Prime Minister to the possible threat to the China Light and Power deal, with which he has been personally
concerned. But I think his first concern will be the state of
employment in the British textile industry.
4. Mr Murray is broadly in agreement. He has also pointed out that it would be particularly awkward to justify a failure to look after the interests of Hong Kong, a UK colony, if we are simultaneousl pressing for favourable treatment for India and Pakistan.
jimm
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M JE Fretwell
7 September 1977
CONFIDENTIAL
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