Reference....
НКК 6/331/1м
93
(79)
(14 & (15) on K 16/2
(75)
(81) (80)
(81)
(80)
1
Mr. Carter
In paragraph 4 of their, telegram 659 Hong Kong have given the impression that the purpose of their visit to London will be to express their views on those undecided questions of textile policy about which the two PCO papers had been prepared in BOT. But we have gathered that Hong Kong are expecting primarily to discuss what they have called "the relationships between us in matters affecting the conduct of our trade with third parties". The TAB have also demanded that "HMG be asked to clarify precisely the Hong Kong Government position with regard to authority to conduct negotiations on textile problems" and the Canadian delegation have said "it would be helpful ... to be given a defini- tive statement of Hong Kong's negotiating authority". S. Stewart has, also done his share of pressing for the same thing.
Mr. Wilford's view and mine is that if we do go for a definition of Hong Kong's position, particularly at, this time, Hong Kong will not like the result. He has said so in a personal letter and telegram to the Governor and so far as the TAB are concerned he thinks
that the statement Jordan evidently made to them paragraph 3 of their telegram 661 - ought to be sufficient.
The issues which will have to be discussed with Jordan in varying depth are these:.
(a) The PCO Issues
These should logically be discussed first because if they could be resolved the other matters would fall
into place. But as you know they are matters which have 'long been in dispute in the BOT and no one expects them to be settled while the Hong Kong delegation are here. The FCO Official Committee meets on 5 (or possibly 3) September and the official divided BOT views will probably remain for decision by the President who returns on 8 September. The BOT have been saying that these questions will have to be resolved by the time Hughes goes to Ottawa, primarily to talk about tariff matters with the Canadians, but also to take the Hong Kong/Canada negotiations a stage further. I detect in the BOT some uncertainty whether these policy matters would in fact be decided by then and it might be that only the final deadline of 8 October, when the CTC meets and the UK delegation will have to be firmly instructed, will be met.
These issues can be boiled down to the question what our attitude should be to the prolongation of the CTA which entails some consideration of non- cotton textiles.
((b) The Canadian Negotiations
We have not heard from Hong Kong about these negotiations since 20 August. Presumably the Canadian delegation has returned to Ottawa with any decisions reached, both about cotton and non-cotton items, ad referendum their Government. There is supposed to be the possibility that the Canadian Government will demand through their High Commissioner
/ in London
...