but not yet
X
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should be conveyed to us. They spoke strongly about the need for Hong Kong to be allowed the maximum carte blanche over commercial negotiations subject to full consultations where
Hong Kong and HMG trading interests conflict.
(4) Derek Jones, leading the Hong Kong delegation, reports a
private conversation with Howarth of the Canadians in which Howarth said that officials would probably recommend the use of the surcharge out of a number of possible courses of action.
(5) The Governor has asked that Hong Kong's views should be
taken fully into account before Ministers decide on the issues of policy about which the Board of Trade is at present, with considerable internal disagreement, preparing a PCO paper. He says he is ready to send an appropriate officer to London at any time for this purpose.
I recommend,
(1) that we inform Lord Shepherd. I think we are obliged in
any case to do this by the expressed wish of ExCo unofficials. On this his last day in the Office, Lord Shepherd may possibly wish to have a word with a Minister in the Board of Trade to express his anxiety at the possible political consequences if Hong Kong industrialists are too upset by HMG's interference.
(2) that we ask the Board of Trade for their views on these telegrams generally and in particular on the proposal,
(a) that a Hong Kong official comes to London to voice his
Government's views on the matters they are processing for PCO. Presumably the world voice this news to0s, in the F.C.O.
(b) on the various courses of action which Canadian officials
are reported to be contemplating in paragraph 4 of telegram 660.
In general I suggest that the significance of these developments to us in the FCO is,
(1) that the Canadians have certainly been put in a strong position to turn the screws on Hong Kong over cotton.
(2) that the hard feelings of Hong Kong industrialists,to
/ say
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