CONFIDENTIAL
Reference...
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Commodities Dept.
Mr. Whitehead,
Mr. Dritten,
Trade Policy Dept.
Copy to each.
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Conduct of Hong Kong's Commercial Relations
You will-recall the draft "statement" on this matter that emerged from discussions with the Governor of Hong Kong on 24 and 26 November at which Board of Trade and Ministry of Technology were represented. The text is contained in telegram No. 760 to Hong Kong. We have had confirmation from the Board of Trade (but not from the Ministry of Technology) that it is acceptable at official level. It is the intention in due course to seek ministerial endorsement.
2.
The Governor wished to reserve his final endorsement pending further comments from his advisers in Hong Kong. These were contained in Hong Kong telegram No.901 and were considered with the Governor on the 9th December. A short record of these discussions is attached, together with the amended text that resulted (additions and amendments are underlined therein).
3. The Governor did not pursue points (A) and (E) of Hong Kong telegram No.901 for reasons set out in paragraph 2 of the record of discussions.
4.
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On point (B), the Governor continued to express concern about the lack of definition in the words as appropriate" in paragraph 4 of the statement. In our recollection of the earlier discussions with Mr. Jordan in September these words were inserted to indicate that there could be situations where Hong Kong could not "exercise responsibility" or speak for itself and in its own name,
e.&.,
in certain international organisations. We saw advan- tage in the more precise definition now proposed, particularly since it carries the express implication that other arrangements may need to be agreed in these "special circumstances" - so leaving the field clear to consider separately the points raised by Sir Eugene Melville in his letter of the 3rd December. I return to this point in paragraph 8 below.
5. We did not like point (C) and thought it entirely unnecessary. However, the Governor attached some presentational importance to a two-way exhortation of this nature and, since it is after all quite harmless, we accepted the insertion of a new paragraph 8 on these lines.
6.
Point (D) was also in our view unnecessary, though harmless, in the context of paragraph 3. But again presentational considerations were strongly urged by the Governor, and so the amendment was made.
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CONFIDENTIAL
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