CONFIDENTIAL
SAVING DESFATCH
HKK 6/531/1
From the Secretary of State for Foreign and Commonwealth
To the Governor, HONG KONG
28 March, 1969
No. 136
Affairs
76
18
85
フラ
I am writing to amplify my telegram no. 201 which I wanted to send without delay on account of your understandable anxiety to see the answer to your telegrams 177 and 246. I am sorry that you had to send us a reminder but we were awaiting the views of the Board of Trade on matters relevant to your forthcoming negotiations with the Swedes about which we had consulted them.
2. I said in paragraph 2 of my telegram that the indications were that the Swedes would confine themselves to seeking an extension of the existing trading arrangements between you for a further period of one year without pressing for restraints on any further items. The strongest indication that this is so is of course in their memorandum dated 18 March in Stockholm. At the time of your telegram no. 224 you had evidently not received this but I assume that by now the Consul General has handed the memorandum to you. I have a copy.
3. But apart from the fact that the terms of the memorandum ought to preclude discussion about the restraint of new items I must tell you that Baron de Geer, who was in London recently, called on the Board of Trade to discuss a number of trade matters In the course of discussions with Mr. Goldsmith he referred to the forthcoming negotiations in Hong Kong. After explaining that the position in the Swedish textile industry was getting worse he said that they wanted to extend the existing arrangement for a further period. They do not, he said, categorically,propose to ask for export restraint on any non-cotton items, apart from those already covered by restraint agreements. He said that you had been sent a formal request for consultations and handed over a copy of the nemorandum to which I have referred. He added that more detailed statistics would shortly be sent to you with copies to ourselves, through the Embassy in Stockholm.
4.
Whatever designs the Swedes may entertain for the futkre it looks as though there are good grounds for believing that the next round of negotiations will not raise the problems of new restraints on your export trade.
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ALF.