i
(b) The domestin textile industry in Hong Kong may be inclined to surgeat that Hong Kong's interents are being aubordinated to British interest where the two are different.
(c) In the last resort it may be easier for us to curb any Hong Kong desires to act contrary to our wishes if we are not party to the talks with Mr. Stans.
Conclusion
On the
14. While the arguments appear fairly evenly balanced, it would appear that Mr. Stons' visit to Hong Kong has a special charecter and there is thereforo something to be said for a United Kingdon presence which would remind the United States of`our overall responsibilities. The Forcign & Commonwealth Office are in favour of a United Kingdom representative being present. other hand uince we have already heard the United States' case in so far so it is based on the situation in their own textile industry, there is loss need for a United Kingdom participation of a quasi technical kind, and wo should clearly leave it to Hong Kong to expound her own views on the industrial and commercial aspects of her and the United States' textile situa- tion.
In so far as a precedent is being set for future negotiations, it is suggested that in any future negotiations where new issues of principle are likely to arise, the case for a United Kingdom presence should always be considered, but where the issues of principle are reasonably familiar, including casos where voluntary restraint on Hong Kong's part is being Bought on the basis of an industrial situation comparable with the bench-marks already established, the overall United Kingdom- Hong Kong negotiating position will probably be strengthened by a policy of giving guide lines to Hong Kong within which she can conduct her own negotiations, on the understanding that there is reference back to the United Kingdom if any question arises of going beyond, those guide lines. The final paragraph of the attached draft telegram has been framed on the above basis.