Mr Quantrill

MB Stewart

CONFIDENTIAL

HKK 121 616 |

If..

2+1

RIDEX

13.0CT.V7

1.ken

Flag A

tached

Flag B

HONG KONG AND THE MFA

1. I attach a telegram from Stockholm outlining the current thinking of the Swedish Government on the line to be taken in

As is the their negotiations with textile supplier countries. case within the Community, Hong Kong is seen as one of the most serious problems and the Swedish Government regard the Community's position as inevitably

eet the pace for Swedish negotiations.

2.

In a subsequent telegram the Embassy in Stockholm have suggested that the telegram at Flag A should be repeated to the Governor. While it would apparently be proper for us to do so within our remit of protecting Hong Kong's interests, I do not believe that it would in this case be wise to do so.

3. The Governor has already argued on several occasions that other countries are likely to follow where the community leads and we could not therefore tell him anything new. I would suggest that the only effect this telegram would have on him would be to harden the line taken by Hong Kong's negotiators and this would be in no-one's interests. It is certain that the negotiations will in any case be tough and if Hong Kong's attitude should be too obdurate there must be the danger of the negotiations break- ing down, which would not be in Hong Kong's interests.

4. I would therefore recommend that no further action be taken. I have not as yet consulted other departments.

Анамерен

J Thompson

K 245

Hong Kong & General Department

PA. Lo

N

or Theor

10 October 1987 seur PA

Discussed with Is Stewart: he feels that to pass this information to Hong Kong world, - any case, be a betrayal of the Swedish Government's confidence. No futher action therefore (unless you feel we should tell the Embassy i Stockholm that we are not passing the information on, in

whil case, please do rool.

CONFIDENTIAL

Sh 11/10

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