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3. Mr Brack, who is the Treasury desk officer dealing with the Hong Kong defence contribution, told me this morning that he had done what he could to push the decision on this point our way. We cannot however hold up the telegrams to Hong Kong too long while waiting for the Chancellor's decision. We may therefore have to submit them excluding the last sentence in the additional paragraph referred to above.

4. I am attaching a copy of Miss Elliott's minute to Mr Dexter of 5 May (in case you have not got one). As you will see we have followed the proposal in her paragraph 4. I would however be grateful if someone in your Department could clear with the DTI the form of words we propose to use in the telegram to Hong Kong.

11 May 1971

Mr Laird

EMarin

EO Laird

Hong Kong Department

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EX. 145

We have had a word with Miss Elliott about the texts in paragraphs 1 and 2 of your minute. She was somewhat doubtful whether the industry side of DTI could possibly agree to the message in paragraph 2 of your minute. It does in effect tell the unofficial members that we would reconsider the textile policy if Hong Kong's economy were seriously threatened. She very much doubted whether the CT Division could possibly agree to a general undertaking of this sort.

2. In view of the need for urgency perhaps the best way of dealing with this would be for your people to clear the text direct with Miss Elliott. I must confess that I have some sympathy with her view and I am inclined to doubt the wisdom of a broadly phrased series of telegrams to Hong Kong which will give any hint that the textile tariff policy might be modified or changed.

12 May 1971

M.M

M E Heath

Commodities Department

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