Reference....
To this
we guard against deflection of Hong Kong's trade. If we cannot avoid severe discrimination against Hong Kong, then we must provide against this danger, by adjusting our own offer in order to scale down the opportunities to other developing countries competing with Hong Kong for our market and so to allow for increased imports from Hong Kong. end, it seems to me that we should be prepared to consider the exclusion of countries and/or products, the use of restrictive duty free quotas and the principle of competitive need, making full use of all these possibilities to drive a better bargain for Hong Kong• This means, I suggest, that we ought to be suitably robust in defence of Hong Kong's interests, to the point of making ourselves "difficult" to accommodate on the scheme as a whole. To my mind, what may be at stake would justify this.
8. At the end of the day we must see to it that we are not likely to be faced with the situation that Mr. Tarlton has described (in the enclosure to your minute) as the "ultimate irony of joining in the general discrimination against Hong Kong".
It would be politically disastrous if we had to proceed to special measures to restrict increasing imports from Hong Kong over a broad front as a result of, and for the sake of, international arrangements agreed by us to foster the trade of foreign and independent Commonwealth developing countries. We would find our action indefensible in Hong Kong. In view of our general responsibilities for the Colony, we just cannot afford to be placed in that situation.
8 October, 1969
(W. S. Carter)
Hong Kong Department