Mr. Gaminara

CONFIDENTIAL

(66)

(64)

Hong Kong Commercial Relations: Delegation of Responsibility.

I have now had an opportunity to study in greater detail

the Governor's telegram No. 525 about which we spoke on the

telephone this morning.

2.

I proffer the following comments in case they are of value to you and the Commodities Department in considering the

telegram.

3.

and

Paragraph 2 of the telegram/suggested new paragraph between paras. 6 and 7.

From discussions with the Parliamentary-Under-Secretary of State, who is taking a particular interest in this matter, I believe that on general political grounds he would welcome the delegation of authority being made as wide as possible.

It is a fact that in the first stages of this exercise we were proposing an across the board delegation. When I saw the draft of our telegram No.515 I did raise with Mr. Laird the point

that the delegation was now being restricted to textiles, but he told me that in Whitehall's view this was the field where

matters were really at issue. The Governor apparently does not

share that view and if we could meet him on this it would be

welcome.

5.

On the text itself:

para. 3. The Governor seems to

have a point about the ambiguity of the first sentence and no doubt it can be cleared up by re-drafting by others more expert than myself.

6.

7.

Last sentence of para. 3.

No comments.

First two sentences of para. 4. I think I disagree with the Governor's argument but accept his conclusions, including the amendment he suggests. In any event the guts

of the proposition are in the second sentence which he accepts.

CONFIDENTIAL

/I...

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