doill (100)

BACKGROUND NOTE TO FCO TELEGRAM No.580 TO HONG KONG

At the outset of our discussions with Mr. Jordan and with

reference to paragraph 2(B) of the Governor's telegram No.674,

Mr. Jordan asked that a statement on the constitutional position with regard to Hong Kong's exercise of responsibility in its commercial relations should be prepared with particular reference

to the conduct of the current Canadian negotiations;

represented that this could be the only way of handling the awkward and explosive situation which had arisen vis-a-vis the Governor's

Executive Council and the Textile Advisory Board.

2

he

Mr. Jordan's brief contained the text of a suggested statement (see attachment A). The FCO prepared a revised version (attachment B)

and concurrently the Board of Trade prepared a draft section

relating to the policy of granting voluntary restraints on non-cotton

textiles, the issue at stake in the Canadian negotiations (attachment C).

The two contributions were combined in the draft of a suggested statement prepared by the Board of Trade (attachment D). This was

3.

considered at a meeting in the office of the Permanent Secretary

to the Board of Trade on 2 September and, after amendment in

agreement with Mr. Jordan, was sent to Hong Kong in our telegram No.580.

Hong Kong Department

5 September, 1969

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