NOTHING TO BE WRITTEN IN THIS MARGIN

Registry HONG KONG No.HKK 6/331/1

SECURITY CLASSIFICATION

To:-

DRAFT

MINUTE

Type 1 +

40

From

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

Mr. Whitehead,

Commodities Department.

Industries 1, B. of T.

Copy to:

Mr. Carey,

.In Confidence

he

with coffes

& craft til

for all

Mar 4/8

Mr. Kemmis, CRE, B. of T.

Telephone No. & Ext.

Department

Mr. S. Stewart, Industries 1, B. of T.

Mr. Dunnett, CRE1, B. of T.

Mr. Toms, CRE2, B. of T.

In Mr. Carter's absence on leave I have to take up the matter of non-cotton textiles, Canada/Hong Kong, about which he minuted to you on 1 August.

2.

You will have seen Hong Kong telegram No.603 in reply to our own No.492: I will not pretend that we

find it very satisfactory. I am disposed to blame

Hong Kong's failure to consult fully with us on this

occasion on their staff problems. As you know, they

shot of are suffering from acute staff, shortage. Indeed it

from Squir

has been necessary for Mr. Jones to fill a gap in the Hong Kong Ministry for the time being and I see that

it is proposed that he should lead for Hong Kong in the

forthcoming Canadian negotiations.

3. You will also have seen Ottawa telegram No.87 and Hong Kong's reply telegram No. M.257.

I am

copying both of these telegrams to the Board of Trade. In my view, however desirable it might have been to

postpone substantive negotiations with the Canadians (and in our telegram No. 492 we saw advantage in a deliberate approach to the problem), this is now no longer possible. Ottawa telegram No.87 indicates that there has been difficulty as between Hong Kong and

Canada over reaching agreement on a date for discussions and I fear that if we now try to insist on a postponement, particularly one long enough to give us

a good breathing space, we will arouse Canadian hostility. We know from Guiness' record of the 27th June meeting In

In any ca

case that the Canadians

consider it to be politically necessary to decide the matter in the near future. I therefore think that

/whether

(118281) Dd. 391599 1,500M 2/69 Hw.

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