TNAG-0138-FCO40-174-Conduct-of-Hong-Kong-commercial-relations-1969 — Page 172

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BACKGROUND NOTE TO FCO TELEGRAM No.580 TO HONG KONG

At the outset of our discussions with Mr. Jordan and with reference to paragraph 2(B) of the Governor's telegram No.674, Mr. Jordan asked that a statement on the constitutional position with regard to Hong Kong's exercise of responsibility in its commercial relations should be prepared with particular reference to the conduct of the current Canadian negotiations; he represented that this could be the only way of handling the awkward and explosive situation which had arisen vis-a-vis the Governor's Executive Council and the Textile Advisory Board.

2.

Mr. Jordan's brief contained the text of a suggested statement (see attachment A). The FCO prepared a revised version (attachment B) and concurrently the Board of Trade prepared a draft section relating to the policy of granting voluntary restraints on non-cotton textiles, the issue at stake in the Canadian negotiations (attachment C).

3.

The two contributions were combined in the draft of a suggested statement prepared by the Board of Trade (attachment D). This was considered at a meeting in the office of the Permanent Secretary to the Board of Trade on 2 September a, after amendment in agreement with Mr. Jordan, was sent to Hong Kong in our telegram No.580

Hong Kong Department

5 September, 1969