TNAG-0151-FCO40-187-Exports-of-cotton-textiles-to-Canada-1969 — Page 71

Reference.... HKK 6/331/1

Mr. Carter

I have now obtained the B.H.C. record of the meeting between Mr. Jordan and officials of the Canadian International Economic Relations and Trade Policy Division held on 27 June: it is at |(36). You will see from Mr. Guinness covering

letter that he will be receiving a copy of Mr. Jordan's own notes of the meeting and as you have said we ought to have a copy ourselves.

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2. This is not the first time that Mr. Stewart has said that he has the uneasy feeling that the Hong Kong authorities propose to act in such matters as this without consulting us if they can avoid it. Unfortunately at one stage in the latest Swedish negotiations Hong Kong provided some ammunition for Mr. Stewart's use by the "hypothetical discussions" which went on between Mr. Jordan and Baron de Geer in Hong Kong. But we cannot expect Hong Kong to remain completely silent on such occasions unless they are to risk losing with their trading partners their reputation for acting responsibly in trading disputes of this sort.

3. It ought not to be forgotten, that we sent on Mr. Jordan's behalf the telegram at (27), setting out his objects in proposing the visit to Ottawa. That telegram was copied to Ottawa and (28) from Ottawa expressed the view that it would be most useful for Jordan to visit Ottawa for these talks. In that telegram Ottawa make the point that it would be made more difficult for the Canadian authorities to take hasty action by demonstrating once again Hong Kong's responsible conduct on textile questions.

14. While it is perfectly true from Mr. Guinness'

record of the discussions that there was some exchange of views on a hypothetical basis about what might be done, it is also true that at (x) and (Y) Mr. Jordan underlined that he had no negotiating authority. I cannot see from the record of the follow-up agreed at (Z) that Mr. Jordan has prejudiced the position. Of the alternatives proposed there it seems to me that the most non-committal would be if Mr. Jordan were now to ask Mr. Howarth that the Canadians' new proposal on polyester/polynosic shirts should be put in writing. Hong Kong thereafter could hardly refuse to negotiate, if that was what the Canadians wanted, but we should be on a proper basis and the Board of Trade could take an interest.

5. We would not be out of order I think to suggest to the Board of Trade that they ready themselves for such negotiations in good time and to refer them to their undertaking to prepare a paper on the sort of problems which relate to Hong Kong trading negotiations. These same problems will come up once more, as they came up with the Swedes.

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