CONFIDENTIAL

Hong Kong representative on the delegation were to voice views quite opposed to those which other members of the UK de legation

There is room, as Eugene says, were advancing on behalf of KMG. for explaining and elaborating on Hong Kong's position and special interests; but on policy a common line (decided in advance) must be pursued.

10.

Any statement covering Hong Kong's representation in international organisations would have to ie stated in these stark terms either in the existing draft statement (along lines proposed by Melville in his f`rst letter) or in a quite separate statement. We would not be surprised to find the Governor shy off both these courses on the grounds that he would have the utmost difficulty presenting such a formulation to his unofficial advisers, The alternative is to exclude Hong Kong's representation in inter- national organisations completely from the statement by an amendment of the heading to read: "Hong Kong's Bilateral Commercial

and as Melville now kelations (excluding Hong Kong/UK_Trade)" proposes, to have no written concordat beyond the field of bilateral relations. (Whether or not this would require deletion of the Governor's proposed amendment to para.4 of the statement is some-

We favour this as the most thing we would also have to consider). practicable course and are inclined to think that when the alterna- tives are put to the Governor he will agree. From something the Governor said at the conclusion of our discussions we have reason to believe that he would be prepared to consider the exclusion of GATT and other international organisations from the scope of the present draft statement,

11.

Fugene Melville's later letter might be construed as opposing any written form lation on this subject, even one restrict- ed to bilateral relations. If that is the case, then I fear we shall be unable to meet his views; it is no longer practical politics to abandon this exercise altogether.

12.

I have set out these tentative thoughts at some length, but in my view it would be more fruitful to have a further meeting than to continue our exchanges in correspondence. If you agree, I should be glad to arrange a meeting. If Fugene Melville (who, I understand, will be in London this week, principally for talks with your Department) could join our discussions it would provide a useful opportunity to obtain his views on these latest develop- ments.

13.

I am sending a copy of this letter and enclosure to Carey (Ministry of Technology) and enclose an additional copy of both which you might like to hand to Melville.

CONFIDENTIAL

(L. Monson)

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