CONFIDENTIAL

Hong Kong Department

84

HKK 6/531/1

79

81

27 March, 1969

I am writing in Bunny Carter's absence to thank you for your letter of 24 March about the forthcoming Hong Kong/ Swedish textile negotiations.

2.

I think we had to omit from the telegram we subsequently sent to Hong Kong (no. 201) direct reference to Baron de Geer's call on the Board of Trade on account of the possibility that Hong Kong might otherwise think that more substantive discussions of their commercial relations with Sweden had taken place than was of course the case. I am grateful for the note of your meeting with de Geer which you have now sent and in particular relieved to see the categorical statement that the Swedes do not propose to ask for export restraint on any non-cotton items apart from those already covered by restraint agreements. What is more, the terms of the memorandum are such as should confine the Swedes to a request for the extension of the existing restraints. However, now that we have received from our Embassy at Stockholm copies of the statistics relating to the garment series which the Swedes wish to discuss at these talks, I am hoping that they will not, when the time comes, attempt to break new ground in the direction of restraining further non-cotton items.

3.

Now that we have your record of the meeting I think that we must amplify to Hong Kong the contents of our telegram no. 201. For one thing, I am afraid that we must contemplate at least the possibility that when in Hong Kong the Swedes will not be above representing what passed in the Board of Trade on 20 March in any manner they thought might serve their negotiating advantage. do not want to be cynical but you know the strength of Hong Kong's feelings about the conduct of the Colony's commercial affairs: indeed they have given some recent indications of this in their telegram no. 177.

I

4. But I do not think that it will be necessary to send to the Colony the whole note of your meeting as at present recorded: I trust you agree. I have therefore adapted this in a form which I think could properly be sent by Saving Despatch and I should be

I grateful if you would look at the enclosed draft accordingly. would like to send this by the next Bag, so that your very early comments would be welcome.

Record

Muso Elliott agress in the

amandad S.D.

Milur

28/3

0. H. Kemmis, Esq.,

Board of Trade,

1 Victoria Street,

LONDON, 8.W.1.

167

LAST

79

(H. H. Stewart)

CONFIDENTIAL

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