RC
int! PIKK6/331/1
ină
Copy f
Para(s)
HONG KONG CANADA
My minute of September 3rd recorded the points which the Secretary had asked me to put to the Hong Kong represen- tatives after the meeting held in his room on that day.
My minute of September ith recorded the reactions to the points made by Mr. Jordan and his colleagues.
The purpose of this minute is to record the final instalment of this chapter of events. During the afternoon of September 4th, the Secretary considered in some detail the Hong Kong reactions in a series of interrupted mcetinga at which Kr. Peck, Mr. Carcy, Mr. Stewart and I were present for the whole or part of the time. The Secretary finally Lave guidance on what should be said and late yesterdny evening I called in Mr. Jordan and Mr. Wilford (FCO) to tell then the outcome, This was as follows.
We appreciated from the additional information given us by Mr. Jordan why the Hong Kong Government would like to take the opportunity of Ur. Howarth's presence there to conclude the negotiations with Canada carly next week and we did not wish to object. We should normally have wished to be associated with the conduct of the talks but in this case it would not be practicablo for us to be represented. We were prepared to accept that the decision on a renewal of the restraint agreement with Canada and its extension to cover polyester/polynosic shirts should reat with the Hong Kong Government. But we would ask them to give very full weight to the following points:-
RECEIVED IN REGARY 16.51
1969
HKKG/31/1
17 OCT 1909
THKK G/Y
}
(11)
(1). It was our view that restraints should only
be conceded when a situation had arisen such as one in which Article XIX of the GATT might otherwise have been invoked; or in other special circumstances, such as a threat of action prejudicial to Hong Kong's trading interests. In the Canadian case, we were doubtful whether elther of these criteria applied in the case of blousce and trousers. We believed, on the facts available to us, that there was a case for making an effort to end the restraints on these items.
We were also concerned about the possible implications of the Hong Kong/Caneda restraint arrangements on the restraint situation between Canada and Japan, and we would like the Hong Kong Government to consider this point with
care.
Finally, when full information was available about the Norwegian case for continuing restraints we should wish to consider the extent of consultation and association which we might wish to exercise. We expected to be represented at the talks with the Norwegians.
Mr. Jordan was clearly content with what I had told him and he did not, as I had expected, press me to agree that Hong Kong now had full and unfettered freedom of action to conclude voluntary restraint arrangements with other countries
/once