I recommend,

(a) that we ask the Board of Trade, whether these

developments are such as they would expect to prejudice

the other commercial occasions coming up with the Canadians,

and whether in the event that the Canadian High Commissioner

does propose negotiations with HMG in the course of the next week or two (independently of the discussions Mr. Hughes will be having in Canada on 22 September) they will agree. If

there is to be such a meeting we will certainly have to ask

Hong Kong to send a representative, because agreement could

otherwise not be reached and there would be great ill-feeling

if we bartered over Hong Kong's trade all by ourselves.

(b) that having ascertained the Board of Trade's reactions we inform Lord Shepherd. He will be absent after Thursday

but I cannot see that there will be an occasion before then

unless there are further developments over which he could

usefully intervene on Hong Kong's behalf.

19 August, 1969

(H. H. Stewart)

Hong Kong Department

Copy to Mr. Preston Commodities Department.

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