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Having considered FCO telegram to me' no. 384 of 2 September about Hong Kong's position on textiles in relation to the GATT, I thought that it would be better to reply by letter rather than add to the telegraphic dialogue.
2. The telegram deals with the various issues involved in the reverse order to that adopted in my telegram no. 616 of 12 August. I will comment in the order used in your telegram but, as the matters are interrelated, there will inevitably be a certain overlap.
3. First, as regards Hong Kong being deemed to be a contracting party to the GATT under Article XXVI: 5(c), I certainly take the point about the political implications of the precedent of the Federation of Rhodesia and Nyasaland. You will note that I said in paragraph 3 of my telegram that this approach could well raise difficulties in the international climate of today; and I was thinking particularly of Rhodesia. Indeed, my main purpose in putting the idea forward was to draw attention to the logical consequences if conflicting UK and Hong Kong views hed to be expressed more than very occasionally in the GATT. I still remain of the view that the expression of divergent views from the UK delegation is most undesirable, as it would weaken our position with other delegations, some of whom would be only too ready to exploit the differences. It would also put the leader of the delegation in an impossible position if he had, as a result of obvious conflict, to state the delegation's view.
E. 0. Laird, Esq., OMG, MBE,
Hong Kong Department,
Foreign and Commonwealth Office.
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