already knew) that Hong Kong could not and

would not object to the application of

stringent safeguard procedures, provided

these were applied on a non-discriminatory

basis.

(ii) Tactics in handling the issue of beneficiaries.

Mr. Jordan felt that there was no alterna-

tive but to leave tactics and timing to those

who are handling the issue on the spot (Messrs.

Jones, Kemmis and Goldsmith). It was agreed

that a determined effort should be made

(on our initiative, if necessary) to get the

question of beneficiaries settled in OECD

and to avoid it becoming a matter for

argument and bargaining in UNCTAD, where

adverse attitudes by other developing

countries to Hong Kong's eligibility might

lead to a hardening of views against Hong

Kong. Nevertheless Mr. Jordan was clearly

not in favour of an early abandonment of the

position that the principle of self-election

should apply unconditionally to Hong Kong.

When the stage is reached indicating the

need to take a decision to compromise, the

Hong Kong Government would wish to be

consulted. We said that we of course

understood and accepted this point : our

concern was that this point of time might

not emerge all that clearly and there was

perhaps a danger that our representatives

might be drawn almost imperceptibly into a situation of discussing compromise solutions

/ (iii)

NOTHING TO BE WRITTEN IN THIS MARGIN

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