Reference

(174)

Mr Dodds Commodities Dept

A

TALKS WITH HONG KONG - 10 JANUARY 1972

1. You asked for a brief note of our telephone conversation this afternoon on the reference in my earlier minute to MMFS.

2. The main reason for Hong Kong's concern is that the Colony has always maintained that the quantity of MMFS exported by Hong Kong does not constitute a threat to any country - including the USA and the UK. Unfortunately the USA did not agree and, supported by HMG, Hong Kong fought the US contention. The UK/Hong Kong attempt failed to convince America and Hong Kong's fear ever since has been that if the States could succeed in this respect, other countries might follow suit.

3. Mr Sellars assures me that Mr Ridley did suggest MMFS might be included in the coming round of talks and because of this and Britain's entry into the EEC, Hong Kong is afraid the UK might intend to become one of those "other countries". Nevertheless, though they hope this is not the case, their main request is that if MMFS are included, their delegation should be warned in advance. As I am sure you agree, 'this is a fair request.

J A Clewley

Hong Kong Department 31 December 1971

DD 896639 140609 500M 7/71 GM 3643/2

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