SECRET
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XCS(75)8
Timing of Announcement
10
Mr Rodgers is due to appear before the Defence and External Affairs Sub-Committee of the House of Commons on the afternoon of 9th December. No doubt he will be under considerable pressure from the Members of that Committee (which recently visited Hong Kong) to disclose the state of negotiations between the two Governments. No doubt he will feel obliged to tell them that provisional agreement has been reached between himself, on behalf of HMG, and the Governor and his team on behalf of Hong Kong, subject to approval by the Executive Council. Mr Rodgers, therefore, feels that it would be appropriate to make a public announcement the same evening (9th December).
11
The Governor has made it clear during his discussions with Mr Rodgers that any such statement by Mr Rodgers to the Sub-Committee would have to make it clear that the conclusion of the Agreement is dependent upon the Executive Council tendering favourable advice.
12
The Governor has also emphasised to Mr Rodgers the grave difficulties which will ensue if there is any imposition of restrictions on textile imports from Hong Kong.
13
With regard to import restrictions, Honourable Members advised on 2nd December that any announcement by HMG of the im- position of further restrictions on the import of Hong Kong products would be gravely embarrassing, particularly if there was not a substantial interval between announcement of a new Defence Costs Agreement and any such restrictions.
14
Mr Rodgers has undertaken to consult the appropriate Cabinet Ministers on this point and to inform the Governor on the afternoon of Monday, 8th December, as to how far HMG is prepared to give an assurance about import restrictions. The Acting Governor will report the latest position to Members at the meeting on 9th December.
15
The Governor, while fully sympathising with the reluctance of Members to be rushed, feels that, if a satisfactory assurance is obtained, it would be difficult to justify delaying the announcement.
16
If no satisfactory assurance is forthcoming with regard to import restrictions, it will be necessary for Honourable Members to advise on the line which the Governor should take.
Publicity
17
Clearly the public presentation of this Agreement will be very difficult. Honourable Members may wish to give some preliminary thought to the manner in which they feel this should be handled, so that the matter may be fully discussed on 9th December.
SECRET