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4. WE OFFERED NO OPINION ON WHETHER OR WHEN HONG KONG WAS LIKELY
TO FEEL ABLE TO MAKE THIS QUANTUM LEAP. PARAGRAPH 5 OF THE GOVER'S
TELEGRAM NO 1123 OFFERS NO CLUE. WE FELT OBLIGED TO AGREE HOWEVE THAT A MOVE BY HONG KONG IN THIS RESPECT WOULD SEEM TO OPEN THE ONLY
REMAINING WAY TO AVOIDING AUTONOMOUS MEASURES BY THE COMMUNITY WHICH
WOULD INEVITABLY HURT HONG KONG'S TEXTILE INDUSTRY MORE THAN A
NEGOTIATED SETTLEMENT. NICOLL THEREFORE PRESSED THE COMMISSION
ALONG THE LINES OF YOUR TELEGRAM UNDER REFERENCE TO DO EVERYTHING
POSSIBLE TO MAKE IT EASIER FOR HONG KONG TO RETURN TO THE NEGOTIATING
TABLE.
5. TRAN FINALLY SAID THAT HE WAS NOW PREPARED TO INVITE THE
HONG KONG GOVERNMENT TO RESUME NEGOTIATIONS, WITHOUT ANY PUBLIC PRECONDITIONS OR ANY ATTEMPT TO SCORE POINTS. HE WOULD EVEN RE
PREPARED - IF SUCH A GESTURE WERE ESSENTIAL - TO CONCEDE TO
HONG KONG THAT HE MIGHT HAVE BEEN WRONG IN NEGOTIATING VIA THE MEDIA.
MOREOVER, HE AND BECK WERE READY, IF IT WOULD HELP, TO FLY TO
HONG KONG AT SHORT NOTICE. ALL THIS HOWEVER IS ON THE SINGLE CONDIT-
ION THAT THE HONG KONG GOVERNMENT FURNISH THE COMMISSION WITH A
PRIOR ASSURANCE, WHICH NEED NOT BE PUBLIC, THAT THEY ARE WILLING
TO NEGOTIATE SERIOUSLY ON THE BASIS OF THE PACKAGE PUT TO THEM ON
26 OCTOBER, THIS MEANS IN EFFECT THAT THEY WOULD HAVE TO ACCEPT
THE PRINCIPLE OF CUTBACKS AND THE COMMUNITY'S CLASSIFICATION SYSTEM.
BUT THE LEVEL OF CUTBACKS WOULD STILL BE NEGOTIABLE AND THE
COMMISSION'S ASSURANCES ON EXPORT CONTROL WOULD STILL STAND.
6. AS SEEN FROM HERE THIS IS ABOUT AS FAR AS WE CAN REASONABLY
PRESS THE COMMISSION TO GO, GRANTED THAT WE ARE AS RESPONSIBLE AS
ANY OTHER MEMBER STATE FOR LAYING ON THEM SUCH A TIGHT NEGOTIATING
DIRECTIVE. THE COMMISSION ARE ANXIOUS TO CONCLUDE AN AGREEMENT WITH
HONG KONG BUT THEY FEEL THEMSELVES TO BE IN A STRONG POSITION, THE
MORE SO SINCE NEGOTIATIONS WITH SOUTH KOREA ARE, THEY SAY, NEARING
A SUCCESSFUL CONCLUSION. RESERVES ARE STILL IN HAND FOR HONG KONG
BUT TIME IS NOT ON THEIR SIDE.
FCO ADVANCE F L A SH TO:-
FCO
MAITLAND
STERN (EID(E)), STEWART (HKD).
FRAME EXTERNAL,
EID
HK & GD
[ADVANCED AS REQUESTED]
ADDITIONAL DISTRIBUTION FRAME
2
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