(215)
(76)
(47)
(80)
(90)
,
in London to negotiate with HMG but no more has been heard about this since 18 August and it does not seem a likely development. Presumably the next stage will be a resumption of the negotiations in Ottawa on or after 22 September with Mr. Hughes and a Hong Kong | representative. There will have to be discussion
between Jordan and BOT how this next round is to be played, whether restraints can be agreed and if so at what level and for how long a period. These still current negotiations have been lost sight of among all the questions of principle which have come up. In effect Hong Kong are at the mercy of the Canadians because in two stages, the first of which they took on their own initiative, they have frozen their trade in polyester/polynosic shirts although, of course, very large number of polyester/polynosic shirts were shipped by Hong Kong exporters when they were expect- ing restrictions. The Canadians have given an unofficial indication to Jones what they think are the choices open to them 'and the BOT have been asked for comments on those choices. They are discussed by Mr. Dunnett in his minute of 25 August.
a
(c) The US Approach which is certainly impending and
may have been made.
In the light of the decisions, or lack of them, on matters of principle it will have to be decided what Hong Kong may or may not do. We have only advised them on K6/304/1 against any substantive response to the American
(4) on K 6/394/1
(2) on K 6/29
and
(171/E) on K 6/531/1
approach without consulting us. Industries' view is that in making an approach through their Consul General in Hong Kong the Americans are out of order.
(a) The Renewal of the Norwegian Agreement
On 15 August we received Jordan's note on his informal discussions in Oslo on 19 June which indicated discussions on an extension in time and in scope of the existing agreements at the end August/early September. We asked Hong Kong what their intentions were and were told that the Norwegians had made no further noises. They will certainly be approaching Hong Kong after the holiday season and again it will have to be decided what Hong Kong may do about it.
(e) It will probably be difficult to avoid some dis-
cussion of what Jordan was or was not told about future MMF restraint agreements during the pre-Swedish talks. There is nothing in the records of those talks (which you will remember we sent through Hong Kong Government Office to Hong Kong asking that they should make any comments to us none have arrived) but I am sure, everyone will try to avoid it except Industries. Mr. Wilford has written and I attach the TJ with his letter on it.
(H. H. Stewart) 26 August 1969