Reference.......

would lay himself open to criticism for not consulting his Textile Advisory Board, Politically, therefore, we shall get no benefit from the consultation that has taken place up to now. I cannot help feeling that when the decision is announced without further formal consultation the Governor will hark back to paragraph 2 of Guidance Telegram No.77 of 1 April in which we said: "There is no question of our approaching other Commonwealth Governments to discuss the proposal for a tariff on cotton textiles unless and until a decision has been taken to follow up the Textile Council's recommendation on this subject". There is an implication here that we would formally consult before reaching a decision. It seems to me that we in the FCO might have a point here to support a general argument that no final ministerial decision should be taken on this issue without at least some preliminary consultation with Commonwealth Governments. Prior consultation should at least

reduce the adverse political consequences of a decision so important to their interests. In the case of Hong Kong it would enable the Governor to consult his Textile Advisory Board. He could, of counse, off his own bat have consulted his industry a lot earlier when the Textile Council published its report, on the basis that here was a proposal HMO would have to consider seriously and the implications of which the Colony must therefore carefully examine;

but he Zuidently 10 did not do so. Perhaps we missed

a trick here and should have advised him at an early date of the need to take the proposal seriously and assess, with his industry where Hong Kong's interests lay. But I must say that I had envisaged ever since the issue of Guidance No.77 some process of formal consultation before any decision was taken,

}

2 July, 1969

(W. S. Carter) Hong Kong Department

Copies to:

Sir A. Galsworthy

Sir Leslie Monson

Mr. Moreton

Mr. Gallagher

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