CONFIDENTIAL

1. I agree very much with Mr Stuart. The key points seem

to me to be that the expectation in Hong Kong is that we will

pursue now the aim of eliminating discrimination against them;

and that the political damage would be done if we commenced

discrimination against Hong Kong, without having done our utmost

to avoid having to do so. Unless we succeed in this round the

discrimination will begin on 1 January 1974 and I do not believe

that a promise to start pressing for its removal later that

year would be sufficient to avoid that damage.

It was my

understanding that it was the need to avoid this political

damage which led Mr Royle to conclude that we should press the

Hong Kong case during the adaptation discussions rather than

wait until next year. I very much hope therefore that it can

be agreed that we should both present and argue the Hong Kong

case in the Community now.

3 October 1973

Copies to:

PS to Mr Royle

EYoude

Sir Duncan Watson

Mr J Robinson

Mr Butler

1. I am grateful to Mr Youde for an opportunity to put what is

inevitably my opposite point of view.

CONFIDENTIAL

/2.

Share This Page