TNAG-0138-FCO40-174-Conduct-of-Hong-Kong-commercial-relations-1969 — Page 102

authority and impair their negotiating power.

This

On another recent occasion we found Hong Kong unreasonably

concerned lest UK participation in their trade discussions should

take such a form as to prejudice their negotiating authority.

was the occasion when their delegates to the Cotton Textiles Committee

at Geneva met the Americans for bilateral discussions of non-cotton

textiles, and it was thought appropriate, because the U.S. was asking

for a comprehensive restraint agreement, that Sir Eugene Melville

should take the Chair. However, in the event the discussions went

N.P. well and there was no friction in Geneva. We cannot be sure that

the Governor will confine himself to asking us to elucidate and

elaborate on the agreed statement of last August. The factual

introduction above covers only the last three months, when certainly

the conduct of Hong Kong's commercial relations has been a most

active issue. But the same issue has been the cause of periodic

ill-feeling between the colonial Government and, mostly, the Board of

Trade for two years or more, during which time there has been ample

evidence that Hong Kong dislikes any degree of interference by,

or even the appearance of subordination to, HMG in their commercial

affairs. With the growth of Hong Kong's export trade and the increasing complexity of the commercial affairs in which the Colmial

Government is involved their resentment has increased.

Much of Hong Kong's acute sensitivity on this score derives

from the clash of particular personalities over particular

contentious issues. But making every allowance for this we must

still be prepared for the Governor to go much further with his

demands than a request that we should clarify the existing position.

For one thing he is very likely to argue that the Hong Kong

commercial community, which has, through the TAB, a dominant influence

/ on the

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