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Reference...

HKK 6/18

Mr. Rushford

You were good enough to look at these papers a few weeks ago.

Your minute and Mr. Steel's, both of

11 June, refer.

2. As you will see, we are trying to work out an arrangement which will enable Hong Kong to enter into agreements with her trading partners on non-cotton textiles without prejudicing our own position in negotiations with other countries. Our telegram to Hong Kong No. 415 of 19 June sets out the proposals which have been welcomed by the Hong Kong Government. We still have to get over the point raised by UKMIS Geneva in paragraph 3 of their telegram No. 451. own view is that what we are proposing to do is no more than to accept the political realities of the situation (see paragraph 2 of my minute of 2 July to Mr. Heath).

My

3. I should be grateful for your further views on this problem. We shall, of course, consult you again on the terms of the despatch which, it is proposed, should be sent to Hong Kong.

2 July, 1970

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6 July 1970.

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