Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

DRAFT

LETTER

To:-

D. J. C. Jones, Esq.,

Commerce & Industries

Dept.,

HONG KONG.

In Confidence

Type 1 +

From

Telephone No. & Ext.

Department

10/0

Copies to:

D.i. Dunnett-

R. Goldsmith

of T.

Mr. Ingram

D2H.A

Thank you for your very full report (your letter of 12 June) on your discussions

in Hong Kong with Ernst about EEC's common commercial policy.

These exchanges with Ernst were touched on

in discussions with David Jordan in the Board

Hannay, b.K. Deletion of Trade on 23 June (and also, Í understand, la ffc, Brussels.

in his discussions with Sir James Marjoribanks and Freddie Jackson in Brussels last week).

Jordan emphasised how useful it had been to feed in to the Commission by this means some basic facts about the French quotas on Hong Kong. It was generally agreed here that you

handled Ernst very well and that there was value

to be gained in maintaining this and such other informal contacts with EEC officials as you and

Bob Goldsmith have established in Geneva.

Sh

It was of course right of Hannay to see

declared

of seeking danger in Ernst's intention too, by informal

seek, contacts, "an agreed position that would not prove unfavourable to Hong Kong". But we are

all too old hands at the game to fall for that

one; and we here knew that, following the

well established precepts under which the con- duct of Hong Kong's commercial relations is

shared between us, you would not enter upon

these talks on other than an exploratory basis

and without commitment.

I am sending copies of this letter to Denzie Dunnett,

Bob Goldsmith and Ingram in the Board of Trade

and to Hannay in Brussels.

W(B)L 51-7433-

NOTHING TO BE WRITTEN IN THIS MARGIN

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