Mr. Whitehead
CONFIDENTIAL M. Stewart-
Reference..
120
R+R K6/304/1
116
1116
114
Mr. STANS' visit to HONG KONG
I attach a copy of Mr. Stewart's minute on the draft Board of Trade submission on this subject.
I too am in general agreement with the latter. I
fear, however, that a somewhat different document may
emerge when the Industries Division of the Board of
Trade have finished with it: there is possibly a tactical advantage in our supporting Mr. Dunnett's draft at an early date.
2. On the substance of the guidance telegram to Hong Kong, my inclination is to strengthen the first sentence of paragraph 3 of the telegram by omitting the words "if possible" and substituting "altogether". Tactically at this stage it would seem vital to avoid giving the Americans any indication that Hong Kong would be ready to accept an extension of the ï.T.A.
3. I am quite sure it is right that the U.K. should
be represented at these talks in Hong Kong. They concern an issue of general commercial policy in which our own interests (and those of some of our European trading partners) are closely involved. Hong Kong
is well aware of our interest and I feel sure that
they will not take any exception to our desire to be
1215 represented at the talks. For these and other
reasons I do not share Mr. Stewart's view (paragraph 9 of his minute) that it would be advisable for our representative to withdraw as soon
as the talks have started. I consider he should be
present throughout; partly because the Americans
might misinterpret our withdrawal as leaving the field clear to them to put pressure on Hong Kong; and partly because we must try to ensure that Hong Kong follows a hard line with Mr. Stans. If the recent Swedish negotiations are anything to go by they may be tempted in our absence to soften in face of strong American pressure. This may happen in any
event, but if it does we should want to know at first hand how and why it happened (e.g. what pressure the Americans applied).
/The choice
CC
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