Community in the past. The inevitable answer to hard
pressure will be that the UK should provide for Hong Kong
by increasing the UK's global ceiling to take extra imports.
This of course would not be acceptable. However I think
we should do what we can to meet the Governor's concern, if
only from a presentational point of view.
6.
I therefore recommend that Sir D Maitland should
have a quiet word with Commissioner Davignon, warning that
it would be a mistake to push Hong Kong too hard. In spite
of the real risks for Hong Kong if she refused to conclude
an agreement with the Community, in a situation which Hong
Kong judged desperate, she might be prepared to take that
risk. This would probably cause other suppliers to refuse
to conclude, lead to the breakdown of the Community's
approach and to imposition of unilateral measures with all
the implications that would have for world trade, particularly
for the GATT MTNs.
7.
I also recommend that we should, as he has requested,
recall the Governor of Hong Kong for consultations on this
subject, at which we can emphasise our preoccupations.
hope Edmund Dell will be able to see him.
8.
I
I am copying this minute to other members of EI`
and to Sir J Hunt.
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