TNAG-0144-FCO40-180-Exports-of-textiles-to-United-States-of-America-1969 — Page 60

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ARCG/531/1

Mr. Milne.

R.

129

c.c. Mr. H. Stewart, Hong Kong Department

Mr. Stans' Visit to Hong Kong

Following our talk this afternoon I have spoken to Mr. Dunnett and have told him that we could not go along with the line suggested in Mr. S. Stewart's minute to him of 2 May. Mr. Dunnett said CRE also could not accept Mr. Stewart's line.

I amplified our objections by saying that

(a)

(1)

a distinction must be drawn between these matters on which Hong Kong had already committed herself (and these seem to be entirely in the cetten textiles field); and

those matters on which she had made no commitments.

In regard to (a) clearly we could not new issue instructions that the commitments undertaken should not be honoured. We could however (and might well feel this to be necessary) apply a restraining hand on Hong Kong in regard to matters on which she was not committed but on which she had indicated to us that she was prepared to make concessions.

A further distinction should be drawn between cetten textiles on the one hand and non cotton textiles on the other. In regard to cotton textiles Hong Kong was working to a negotiating line which had I understood been agreed by the Board of Trade. Hong Kong telegram 339, as I read it, did not say that Hong Kong had undertaken commitments in regard to non cotton textiles.

I also said that I did not think that we could now propose a change in the venue for the next meeting with the Swedes from Stockholm to London. Mr. Dunnett commented that this would be tantamount

I added that it to putting Sweden in the deck.

seemed to us to be right to tell Hong Kong that she should stand out against making any further con- cessions before the proposed meeting on 20 June and that she should certainly not make any announce- ment of a more forthcoming attitude on 20 May.

I understand that the Board of Trade will be drafting a reply to Hong Kong and that we shall see it in draft. I told Mr. Dunnett that I would not comment further in writing since I propose to regard the exchange of minutes with Mr. Stewart as an internal Board of Trade matter which I had been allowed to see as a matter of courtesy.

(G.S. Whitehead)

5.5.69

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