TNAG-0147-FCO40-183-Exports-of-textiles-to-United-States-of-America-1969 — Page 14

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رحي

products is now likely to be so weak that Hong Kong would be obliged either to reject every individual request (assuming the Americans could be induced to make them), or fatally pre-

judice the strength of their defences against a host of

similar weak cases which might thereafter be made out against

them. I think this is a genuine conviction on Hong Kong's

part.

4. You will notice the passing reference in Sir Eugene Melville's letter to the explanation he gave Mr. Long that

Hong Kong's views were now "in line" with ours. No doubt he could hardly say anything else, having just chaired the US/

Hong Kong discussions, but we may be forgiven for expressing

some reservation on this point ourselves. Hong Kong certainly

inclines to the view that they should follow the EEC and UK

suggestion that any problem should be discussed in the GATT.

But there the identity of view between Hong Kong and ourselves

may cease because they go on to talk about the extension of the

CTA to include some or all cotton/MMF blends. No doubt this

heresy as it would certainly have been called not long ago

might suit their purposes better than some other developments.

But I do not know how much support it would attract at this

stage in the Board of Trade or in Commodities Department. I am copying this minute to Mr. Milne.

5. We have certainly not yet asked the Board of Trade about

Hong Kong telegram No. 854. However, I have the idea that

something of an agonising re-appraisal may be going on in the Board of Trade of the policy which was last set out, of course, in the PCO paper (with some dissent on Hong Kong's part). I doubt if the Board of Trade would yet be ready to answer. But

certainly the record by Mr. Jones of some discussions he had

with the GATT Secretariat will have landed with something of

a thud on Mr. S. Stewart's desk. The GATT staff with whom Mr.

Jones had discussions found what was, and may still be, the

Board of Trade attitude towards the extension of non-cotton

restraints incomprehensible. As you know many of us found it

unrealistic ourselves. We ought to consider whether to ask the

Board of Trade where they now stand but my own view is that we

/should

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