TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 171

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TELEGRAM NUMBER CREDA 022 OF 1 FEBRUARY

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SECRETARY OF STATE FOR TRADE'S SPEECH

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14/20 UTION

1. FOLLOWING 13 TEXT OF FIRST PARAGRAPH OF ROWLEY'S ARTICLE IN FINANCIAL TIMES OF 30 JANUARY:

QUOTE, MR JOHN NOTT, THE BRITISH TRADE SECRETARY, WARNED BUSINESSMEN HERE THAT THE UK GOVERNMENT WOULD PROBABLY HAVE TO RESORT TO

QUOTE TEMPARARY PROTECTIONISM UNQUOTE AGAINST TEXTILE IMPORTS FROM HONG KONG AND ELSEWHERE BECAUSE OF GROWING UNEMPLOYMENT IN THE HOME INDUSTRY. UNQUOTE.

2. AT AN OPEN PRESS CONFERENCE HELD ON 31 JANUARY AFTER MR NOTT'S RETURN TO THE UK, HE HIMSELF RAISED THE MATTER OF THIS ARTICLE, SAYING HE HAD BEEN QUOTE MISQUOTED IN THE FINANCIAL TIMES AND THAT HE DID NOT (REPEAT NOT) SAY THAT THE UK WERE GOING TO RESORT TO TEMPORARY PROTECTION OF THE TEXTILE INDUSTRY, THE MFA WAS IN EXISTENCE AND THE BILATERAL AGREEMENT WOULD BE ADHERED TO ALTHOUGH IT WAS TOO SOON TO TALK ABOUT THE NEXT ROUND OF NEGOTIATIONS. THE MFA WAS FIRM AND SETTLED AND THE UK WOULD ABIDE BY IT. UNQUOTE

3. THIS STATEMENT HAS BEEN PASSED ON TO RICHARD CLIFT WHO HAD RECEIVED REPRESENTATIONS ABOUT THE APPARENT VOLTE FACE IN THE ARTICLE FROM THE US COUNSELLOR IN LONDON, MR BERNER, WHO HAD SO RECENTLY BEEN CALLED TO SEE MR BLAKER ABOUT THE US NEGOTIATIONS WITH HONG KONG. MR CLIFT AGREES THAT YOU SHOULD NOT SEEK TO PASS SOS(T)'S STATEMENT TO THE LOCAL PRESS AT PRESENT. BUT IF THE MATTER IS RAISED WHEN THAT EDITION OF THE FINANCIAL TIMES REACHES HONG KONG YOU SHOULD USE YOUR DISCRETION ABOUT REFUTING THE MISTATEMENT.

4. THE CORRECTION ISSUED BY SOS(T) WAS ALSO INTENDED TO PREVENT THE UK TEXTILE INDUSTRY FROM GETTING THE WRONG IMPRESSION.

ANNN

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