while the Swedish requests for restraints on underwear and blouses would be further examined in the course of negotiations and reserved for decision after further consultation with us.
6.
It was further agreed that Wr. Jordan would come back to London from Oslo (whic he is visiting after the negotiations in Stockholm) and that Mr. Hughes would convene a meeting at 10.30 a.. on Monday, 23 June for a preliminary exchange of views on the issues of policy involved. Kr. Jordan and I have made it clear that these cannot
be regarded as substantive discussions since the issues must be put
#quarely and formally to Hong Kong for full examination there and a considered statement of their views. I think that this is clearly understood by Mr. Hughes and that he is envisaging exploratory discussions only on Monday.
7.
Full examin:tion may show that Hong Kong's policy of conceding voluntěry restrain...s outside the field of cotton textiles is indeed in conflict with and damaging to the U„K's. interests, both as
regards domestic industry and international trade policies, It is equally likely that the alternative of insisting that Hong Kong
expose herself to the dangers of Article XIX action will be shown to carry the threat of severe damage to Long Kong's trading interests.
Such a conflict of interests could face us with a real dilemma and the issue will be of sufficient importance, I suggest, to be put to Ministers for decision in the light of H..G's. general responsibilities for the good administration and well-being of the Colony.
8.
While I hesitate to suggest that at this stage we need to be
represented in the B.0.T. talks at a higher level than Mr. Whitehead and myself (although it might comfort the Hong Kong side to see F.C.0. representation comparable to that fielded by the B.O.T.), ve đo, I think, need some guidance on what we should say about possible U.K. requests that Hong Kong should concede restraints in non-cotton
textiles. Like the original cotton restraints this could have an unfortunate political impact in Hong Kong. But logically I can see no grounds for arguing against the proposition that the U.K, would be
justified in calling on Hong Kong to restrein on evidence of serious injury to the domestic industry as good as that on which Hong Kong
/ has been
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