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Mr. Gaminara
I am sorry to see from Mark Heath's minute of 9 September that the Board of Trade are tending to have further doubts on the wisdom of giving Hong Kong authority to negotiate on all commercial matters and not only on textiles.
2.
Dunnett's main worry, as expressed at the meeting on 2 September, was that Hong Kong might rush into negotiations with other countries without the Board of Trade having an opportunity to decide whether they could agree with the policy that Hong Kong wished to adopt. The Board of Trade's apprehensions should, however, be allayed by the revised wording of paragraph 9 of the draft despatch in which the Hong Kong Government are now required "to keep HMG informed about prospective and current negotiations....
3.
It would be a great pity to omit paragraph 8 of the despatch in which the authority is extended to goods other than textiles; if the Board of Trade is prepared to swallow the delegation of authority in regard to textiles which represent nearly half of Hong Kong's exports, it is difficult to understand why they should strain at the balance items of which the largest (electronics) represents only 10% of Hong Kong's export trade.
4.
It is hard to see what actual difference the exclusion of goods other than textiles from the delegation of authority would make in practice. If Hong Kong considered it necessary to negotiate a restraint agreement with another country in, example, radios, they would have to inform HMG before doing so whether or not"commodities other than textiles" are included in the delegation of authority.
5.
for
Since the revised draft despatch has already been sent to Dunnett, it is too late to adopt Mark Heath's suggestion of it being sent to Mr.Hughes under cover of a letter from Mr. Wilford. But, to reassure the Board of Trade and remove their doubts about paragraph 5 of the draft despatch, Mr. Wilford may wish to write to Mr. Hughes on the lines of the draft letter attached.
н
ilford
Р.Т.о.
Kineas.
(G.F. Kinnear)
10 September, 1970.
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