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Mr. Jordan.

(2) The British Economic Outlook

If this were what Jordan really wanted to discuss I do not see how we can go beyond giving him a copy of Hansard in which

appeared the Chancellor's statement on the subject, made after his return from Bonn. In fact, I think it means that he may wish to talk about measures taken as a result of the economic situation, e.g., the import deposit scheme.

Textile

(3) British Shipping Negotiations

Unfortunately, we still have not replied

to the Governor's saving despatch from Hong Kong, sent after Mr. Stewart's negotiations on this subject. We have, however, told Hong Kong that the revised quotas and compensation details set out in that despatch are correct. What remains is a reply to the general argument in the despatch and, on this, the Board of Trade have not yet concerted a draft answer. I have agreed with the B.0.T. that both we and they will be non-committal on this general subject.

(4) Germany

Germany attempted to use Article 6 (b) of the LTA against Hong Kong, but were told that before Hong Kong was prepared to negotiate with them on this basis the Germans would have to approve "the deliberate substitution" of man-made fibre articles for cotton textile goods. The Germans have been silent on this subject for some time and we all hope that they will remain so.

(5) and (6) GATT's 25th Session and OECD Preference

for LDC

These are subjects for Mr. Dunnet and

Mr. Goldsmith's successor in the Board of Trade. Mr. Jordan will be visiting the beard on

6 December and I have warned them.

}

(H. H. Stewart)

Hong Kong Department

3 December 1968

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