XN000022-1976-12-08 — Page 8

WEDNESDAY, DECEMBER 8, 1976

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REPLYING TO A QUESTION BY MR. FRANCIS TIEN, MR. DORWARD SAID THAT THE DC AND I HAD HANDED A NOTE TO THE CANADIAN AUTHORITIES ON DECEMBER 2 EXPRESSING HONG KONG'S GRAVE CONCERN AT THE SUGGESTION THAT AGREEMENTS COULD BE UNILATERALLY SET ASIDE DURING THEIR CURRENCY.

+OUR CONCERN,+ SAID MR. DORWARD, +STEMS NOT MERELY FROM THE DAMAGE WHICH COULD BE DONE TO TRADE IN THE ITEMS CONCERNED DUE TO UNCERTAINTIES AND THE POSSIBLE FRUSTRATION OF CONTRACTS ENTERED INTO IN GOOD FAITH AS A RESULT OF THE BILATERAL AGREEMENTS. WE ARE ALSO MOST PERTURBED AT THE IMPLICATIONS SUCH ACTION COULD HAVE FOR THE NEGOTIATION OF ANY FUTURE BILATERAL AGREEMENTS, +

MR. DORWARD ADDED: +FOR OUR PART WE STILL FEEL OURSELVES BOUND BY THE PROVISIONS OF THE AGREEMENTS IN QUESTION AND INTEND TO CONTINUE TO ACT ACCORDINGLY. WE HAVE SOUGHT ASSURANCE FROM THE CANADIAN AUTHORITIES THAT THEY SHARE THIS INTENT. AS OF THIS DATE A REPLY IS STILL AWAITED.+

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