2.
I regret that this has caused so much difficulty for all concerned, but there is an important point of princi- ple for us in it. I have no doubt that the Hong Kong
Government will be prepared to discuss growth among other aspects when we come to talk about the arrangements for cotton textile exports to the U.K. in 1971 but I must say that I would foresee a good deal of difficulty and argument if the U.K. side starts from the position that 3% growth on sheeting and sheets was agreed in 1958.
A possible explanation for the belief that we agreed to 3% has just occurred to me. Stewart's note said 'Tell Jordan he can have 3% growth if he suspends issue of export authorisations'. Because the issue of .As. was indeed suspended, Stewart may have imagined when he was told this, that we had accepted his "offer" of 3% growth.
In fact,
as I told Carter when he brought Stewart's note round on 7 September, I had already decided to suspend E.As. and had issued instructions for this the previous day. I had given Stewart the opportunity to exercise his right to ask me to do it during the consultations but he had not done so. Never- theless, in order to prevent a sudden surge of shipments before the new arrangements came into effect, I decided to suspend E.As. I hope I have made it clear that this was a decision I took off my own bat (after consultation only with my own staff in the Department) and that the instructions were issued before I received Stewart's note.
I didn't of course regard the 3% as an offer in any case but as a request. In other words, if Stewart wanted to restrict us to a maximum of 3% growth the quid pro quo would have to come from his side, not mine.
We are all moving round here so you may like to know who will be in which jobs. Jack Cater takes over as Director towards the end of September when the position will be :
Director
Deputy Director,
Commercial Relations
Assistant Director,
(Europe)
Assistant Director
(Rest)
J. Cater
W. Dorward
L.W.R. Mills
E.B. Wiggham
I am moving to the Secretariat to take over as Deputy Economic Secretary. So I shan't be travelling so much in future.
(D.H. Jordan)
P.W. Carey, Esq., Ministry of Technology,
1 Victoria Street, London, S.W.1.
c.c. K.M. Wilford, Esq., C.M.G., F.C.O.
D.M. Sellers, Esq. H.K. Govt. Office,
London.