TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 182

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There are a number of major contracts coming up shortly in Hong Kong which British companies are chasing. These include the new power station for China Light and Power (where the British presentation is being made in Hong Kong next week), the extension to the Mass Transit underground railway, and improvements to the Kowloon/Canton railway. This is export business worth hundreds of millions of pounds.

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It may well be that our textile interests, and the political argument for less severe treatment for India and Pakistan, have to be overriding. But in that case, if Hong Kong believes that we are unfairly neglecting their interests, a price may have to be paid in terms of output and employment in our exporting industries including some (power plant and railway equipment) which are themselves now in real difficulty.

CUR

C W ROBERTS

CRE4

V/320

Ext 5242

14 October 1977

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