/ draft
already heard the United States case in so far as it is based
on the situation in their own textile industry, thero is less need for a U.K. participation of a quasi technical kind, and we should clearly leave it to Hong Kong to expound her own viewe on the industrial and commercial aspects of her and the United States' textile situation. In so far as a precedent is being set for future negotiations, it is suggested that in any future negotiations where new issues of principle are likely to arise, the case for a U.K. presence should always be considered, but, where the issues of principle are reasonably familiar, including cases where voluntary restraint on Hong Kong's part is being sought on the basis of an industrial situation comparable with the bench-marks already established, the overall U.K.- Hong Kong negotiating position will probably be strengthened by a policy of giving guide lines to Hong Kong within which she can conduct her own negotiations, on the understanding that there is refer- ence back to the United Kingdon if any question arises of going beyond those guide lines. The final paragraph of the attached/ telegram has been framed on the above basis.
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