FONG KONG

CONFIDENTIAL

Governor,

Hong Kong.

GOVERNOR, HONG KONG

International

Trade

HKD

Commodities

TPD

FED

XXXXXXXXXX

American Dept.

Mr. A. Gregory,

Hintech.

Mr. D.I. Dunnett,

BOT.

Mr. Nicholls,

BOT.

Your telegram No. 423.

Textiles

MIFT contains text of draft despatch implementing proposals outlined in FCO telegram No.415. We should be glad of your views before we submit draft to Ministers for approval.

Our telegram No. A amplifies report on Four- Power talks contained in Geneva telegram to FCO No. 590 of 1 August. If after reviewing situation you still feel that it would be in best interests of Hong Kong to seek to negotiate bilateral agreement with Americans and if American reaction to approach made in Geneva is reasonably encouraging we propose to submit your views to Ministers at the same time as we submit draft despatch. If Ministers agree that you should proceed to discussions with the United States and accept the general line in the despatch, any discussions between Hong Kong and the USA would then be within framework of new arrangements set out

in draft despatch.

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