PRIORITY
CYPHER/CAT A
FM HONG KONG 270855Z
CONFIDENTIAL
CONFIDENTIAL
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TO PRIORITY FCO TELNO 85 OF 27 JANUARY.
RECEIVED IN RGISTRY No. $1
27 JAN 1972
YOUR TELNO 89: TEXTILES LAST
REF.
42)
NEXT
FOR WILFORD
REF.
HKKG/528/
THE SECRETARY OF STATE MAY OF COURSE COUNT ON A FRIENDLY AND COURTEOUS RECEPTION, BUT THE FACT IS THAT THE ATMOSPHERE IS SOURED ALREADY: OUR OBJECT SHOULD BE TO IMPROVE IT BY ANNOUNCING AGREEMENT. BEFORE THIS IS POSSIBLE AN IMPROVED OFFER WOULD HAVE TO BE RECEIVED AND CONSIDERED BY BOTH TEXTAB AND EXECUTIVE COUNCIL, AND THIS COULD TAKE A WEEK OR MORE. SUBSEQUENTLY, AS HODDON-CAVE UNDERSTOO IT FROM RIDLEY, THE DTI WOULD HAVE TO CLEAR THE OUTCOME WITH LANCASHIRE (1.5. UNDERLINE NEXT WORD THEIR UNOFFICIALS EXCLAMATION MARK) AND THE ECC AND OBTAIN THEIR MINISTER'S APPROVAL. ONLY AFTER ALL THIS COULD AN ANNOUNCEMENT BE MADE. TIME THEREFORE
IS RUNNING OUT.
2. THE DTI HAVE NO CAUSE TO WRAP THEMSELVES IN A WHITE SHEET.
IN ANY CASE YOUR SECOND SENTENCE MISSTATES THE POSITION. THE TALKS HAVE BEEN SUSPENDED, NOT BROKEN OFF, TO ALLOW BOTH SIDES TO REPORT BACK. FOR HADDON-CAVE AND HIS UNOFFICIAL ADVISERS THIS MEANS TO ME. ON THIS MATTER I PROPOSE TO ACT ON ADVICE, AND THE ADVICE AS IT NOW STANDS IS NOT TO ACCEPT LESS THAN IN MY TELNO 72.
3. MY GUESS STILL IS THAT A QUICK GESTURE BY THE DTI AS SUGGESTED
IN MY TELEGRAM 73 WOULD PRODUCE ADVICE TO ACCEPT.
MACLEHOSE
FILES
HKD
COMMOD D TPD
ECONOMISTS D
FS
PS TO MR ROYLE
MR BOTTOMLEY
SIR L MONSON
MR WILFORD MR KEEBLE
COPIES TO:
HONG KONG GOVERNMENT OFFICE
LONDON
CONFIDENTIAL