CYPHER/CAT A

CONFIDENTIAL

PRIORITY FOREIGN AND COMMONWEALTH OFFICE

TO HONG KONG

106

TELNO 308

CONFIDENTIAL

NEUTRAL

8 MAY 1969. (MC)

ADDRESSED TO HONG KONG TELNO 328 OF 8 MAY REPEATED FOR INFORMATION TO WASHINGTON AND UKMIS GENEVA.

MR.STANS' VISIT.

YOU WILL HAVE SEEN THE RECORD OF MR. STANS' CONVERSATIONS IN

LONDON CONTAINED IN MY TELEGRAM NO.954 TO WASHINGTON.

2.

AGAINST THIS BACKGROUND IT SEEMS THAT THE MAIN INTEREST

OF ALL CONCERNED LIES IN MAINTAINING THE GENERALLY SOLID FRONT OF OPPOSITION REFLECTING EACH COUNTRY'S ASSESSMENT OF THE

DIFFICULTIES WITH WHICH STANS HAS BEEN FACED ON HIS PROPOSAL

FOR A CONFERENCE TO EXTEND THE L.T.A. WE SUGGEST THEREFORE THAT AS YOU WERE NO DOUBT ALREADY INTENDING, THE MAIN BURDEN OF YOUR REMARKS TO HIM SHOULD BE TO STRESS THE IMPORTANCE FOR HONG KONG, ON POLITICAL AS WELL AS COMMERCIAL GROUNDS, OF MAINTAINING AND DEVELOPING THE LIBERALISATION OF WORLD TRADE, AND OF AVOIDING THE INTRODUCTION OF ANY NEW RESTRICTIONS, PARTICULARLY IN THE FIELD OF TEXTILES WHICH FORM SUCH A HIGH PROPORTION OF HONG KONG'S EXPORTS. THIS IS BROADLY IN LINE WITH THE POSITION INDICATED IN YOUR TELEGRAM 296.

3. IT WOULD SEEM ADVISABLE TO KEEP OUT OF SIGHT ALTOGETHER HONG KONG'S PREFERENCE, IN THE LAST RESORT, (FOR REASONS WHICH WE QUITE APPRECIATE) FOR THE EXTENSION OF THE L.T.A. RATHER THAN THE INTRODUCTION OF VOLUNTARY EXPORT RESTRAINTS OR IMPORT QUOTAS. IT IS NOT IMPOSSIBLE THAT, GIVEN THE LEAST OPPORTUNITY,

CONFIDENTIAL

STANS

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