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5. I duly attended the talks.
They were rough and tough
and much of the sour atmosphere was due to the incorrigible
Mr Stewart's mishandling and unfortunate manner. Hong Kong
thought very little of the U.K. case but were prepared to con-
sider what they could do to help in this particular sector
provided adequate compensation was offered. Mr Stewart was
reasonably generous in his offer of compensation and the Hong
Kong negotiating team (led by Mr Jordan) was prepared at the
close of the discussions to place before the Cotton Advisory
Board a package deal involving reduction in the sheeting sub-
quotas to agreed levels and roughly equivalent compensation in
other categories.
6. The record of these discussions (the only version avail-
able was provided by Hong Kong) need not concern us except to
note that the only reference of substance to the question of
growth is in para 48. Throughout this record there is no dir-
ect reference to the question of growth as it affected these
discussions, or to the point made in the seventh paragraph of
the Aide Memoire that "HMG would also find it very difficult to
contemplate any increase in imports of wide sheeting and sheets
from India and Hong Kong in the period up to the end of 1970
when the present Agreement expires". Nor do I recall any
reference to these matters.
7. The discussions were concluded late on 6th September,
with Hong Kong undertaking to telegraph their decision to Mr
Stewart in New Delhi after consultation with the Cotton Advis-
Mr Stewart departed very early the following morn-
Before he left our hotel, he pushed a note under my door,
written on the back of an envelope. It authorised me to offer
ory Board.
ing.
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