NOTHING TO BE WRITTEN IN THIS MARGIN

reference in paragraph 5(a) to the possibility

that HMG and Hong Kong might pursue divergent

policies in GATT or UNCTAD. We have told

Melville that his suggestions will be taken

into account in the further consideration we

shall be giving to the statement (Goldsmith's

letter of 11 December).

are

It seems to me that the choices before us

(a) To "fuzz" the issue of international

organisations by leaving the amended

statement (including the proposed

addition to paragraph 4) as it is and

taking no further steps to clarify

the position; the difficulties

would then be ironed out as they

arise.

(b) To add separate detailed provisions

to the present draft, on some such

lines as Melville has proposed.

(c)

To exclude international organisations

completely from the scope of the

statement (by amendment of the

heading) and provide for them by

means of a separate set of agreed

guide lines. This would involve

modification of the proposed addition

in paragraph 4.

I judge that Melville would strongly

contest the wisdom of (a); and we would agree

that, tempting as it may be to let this aspect

drift, such a course could involve us in a

series of arguments with Hong Kong about who

says what on its behalf in the GATT, etc.,

which would produce a recurring strain on our

/ relations.

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