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37.
11
Mr. Stans said that this was a chicken and egg situation, but added that adjustment assistance was part of the Administration's proposed package for the liberalisation of trade. He went on to enquire whether Hong Kong was willing to give further consideration now or later through diplomatic channels.
38.
Sir John replied that Hong Kong was always willing to discuss problems, but that any solution on the basis of the C.T.A. in existing circumstances or any circumstances would not be acceptable.
39.
Mr. Stans then said that Hong Kong should send its officials across to the United States to look at the industry He hoped there on the ground and talk to Congressman Mills. that he would not have to say, "I told you so".
40.
Sir John pointed to the admirable record that the United States had had in the trade field, and said that this was perhaps a handicap in Mr. Stans' present mission.
41.
Sir John went on to say that Hong Kong had virtually nothing to ask of the United States, and that it relied on their enlightened self-interest in maintaining free trade.
42.
Mr. Stans enquired whether Hong Kong would, as of that precise moment, be willing to negotiate an overall bilateral agreement on textiles.
43.
Sir John replicd in the negative, saying however that if the United States had a particular problem, Hong Kong would be ready to discuss it within the framework of the G.A.T.T. but without commitment. He said that Hong Kong accepted that the United States had a political problem but not an economic problem. Further, Hong Kong did not accept that there were only three solutions to the problem. Mr. Stans remarked that
they had not found more than three possible solutions so far, and requested that Hong Kong should consider the problem. Hong Kong surely did not want him to report to President Nixon that it was the only country not willing to continue the dialogue through diplomatic channels. He added that discussions were being continued with the other countries visited through diplomatic channels. Mr. Stans remarked in passing that they could convene a G.A.T.T. meeting at any time, and enquired
Sir John whether Hong Kong would be willing to attend.
replied that Hong Kong was not a member of the G.A.T.T. and that it would be up to Britain to react in this regard.
Mr. Whitehead said that as Mr. Stans was aware, there had been a full exchange of views in London, and that the British Govern- ment would continue in touch with the American Government.
He said that on the case as presented and on the information put forward, there did not appear to be any useful purpose in convening a G.A.T.T. mecting to discuss the problem.
Economic Branch,
Colonial Secretariat, 22 May, 1969
CONFIDENTIAL
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