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(B) YOUR PARA. 2(B). THE UNDERLYING CONSTITUTIONAL POSITION IS OF COURSE, UNDERSTOOD AND ACKNOWLEDGED. IT NEEDS NO SPELLING OUT. WHAT I SEEK THEREFORE IS AGREEMENT ON THE PROPER EXTENT IN PRACTISE OF APPLICATION OF HMG'S CONSTITUTIONAL POWERS
IN TRADE-RELATIONS MATTERS SEMICOLON BEARING IN MIND THAT THIRD PARTIES EXPECT TO BE ABLE TO NEGOTIATE WITH US, HAVING DONE
SO (WITH HMG'S ENCOURAGEMENT) IN THE PAST, AND THAT OUR NEGOT- LATING POSITION IS DAMAGED IF THEY CANNOT BE SUREWHETHER WE WILL HAVE
AUTHORITY OR NOT.
(C) YOUR PARA. 4. I AGREE OF COURSE THAT IT IS A PITY THAT THE CONSTITUTIONAL POSITION LOOKS LIKE BEING FORCED INTO THE OPEN, AND IN THE PAST WE HAVE GONE TO CONSIDERABLE LENGTHS TO SOFT-PEDAL IT LOCALLY. BUT I MUST POINT OUT THAT ON THIS OCCASION THE ISSUE HAS BEEN BROUGHT TO AN UNAVOIDABLE HEAD BY MY HAVING BEEN OVER-RULED BY AN ERRATIC USE OF CONSITIUTIONAL POWER AND APPARENTLY WITHOUT REFERENCE TO MINISTERS.
(D) YOUR PARA. 5. I HOPE SO TOO, BUT, UNLESS THE BASIC PROBLEM IS RESOLVED, I FEAR WE MAY RUN INTO THE SAME DIFFICULTIES AGAIN WHEN NORWAY COMES UP SHORTLY: AND WE CANNOT AFFORD TO GO ON.
REPEATING THE CANADIAN PERFORMANCE.
SIR D. TRENCH
FILES
HONG KONG DEPT
COMMODITIES DEPT
SIR L. MONSON
MR. GALLAGHER
MR. WILFORD
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