Mr. Heath
CONFIDENTIAL
Reference......
United Kingdom Relations with Hong Kong
on Textiles
49
I am
I attach a first draft of the submission I would like to see put to Ministers. I have drawn on the brief prepared by the Board of Trade and Mintech for the Secretary of State's visit to Hong Kong last April. not at all sure, however, that I have got all the facts right in the background section. In particular, I have no doubt that the Board of Trade and Mintech will have views on paragraphs 8 and 9; they may well wish to expand this part of the story.
2. You will see that in paragraph 11 I have relied on the statement in UKMIS Geneva telegram No.451 that "it is already widely known that (on the issue of non-cotton textiles) Hong Kong favours different solutions from the United Kingdom. Personally, I hope that we shall be able to kill the concordat. But I suppose we shall have to go back to UKMIS Geneva at some stage on this point.
3. I have not attempted - for two reasons to draft the despatch. First, I think that before this can be done the terms of the submission should be settled. Secondly, I am trying to get hold of the old Colonial Office records for the years when the Short-Term and Long-Term Arrangements were being thrashed out. These will, I hope, show what was sent to Hong Kong then in connection with the handling of trade in cotton textiles.
4. I am copying this minute and the draft submission to Mr. Britten and would welcome any comments he may have. Subject to your views, I suggest the draft might now be put to the Board of Trade and Mintech. Would you do this? Meanwhile, I am seeking the views of our legal advisers to make certain that there will be no constitu- tional or legal complications in what we are proposing. They will, of course, wish to look carefully at the draft despatch when it is ready.
2 July, 1970
En
(E. 0. Laird)
Hong Kong Department
Copy to: Mr. Britten, Trade Policy Dept.
CONFIDENTIAL