CYPHER/CAT A IMMEDIATE HONG KONG
TELEGRAM NUMBER 661
CONFIDENTIAL. [NEUTRAL]
CONFIDENTIAL
TO FOREIGN AND COMMONWEALTH OFFICE
20 AUGUST 1969.
ADDRESSED TO FCO TELEGRAM NUMBER 661 OF 20 AUGUST REPEATED
FOR INFORMATION TO OTTAWA.
79
MY TELEGRAM 659 : CANADIAN TEXTILES.
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AS I INFORMED YOU IN PARAGRAPH 5 OF MY TELEGRAM 655, MY DELEGATION'S TRADE ADVISERS INSISTED THAT THEY COULD NOT TAKE RESPONSIBILITY FOR ADVISING IN PRESENT SITUATION AND THAT FULL BOARD SHOULD BE CALLED. BOARD CONSISTS OF UNOFFICIALS EXCEPT FOR CHAIRMAN (D.C. AND 1.). 2. JORDAN OPENED BY EXPLAINING ON THE LINES OF PARAGRAPH 1(8) OF YOUR TELEGRAM 542 THAT YOU WERE UNABLE TO AGREE THAT WE SHOULD NOW NEGOTIATE WITH THE CANADIANS ON THE LINES OF MY TELEGRAM 603, ON WHICH WE HAD CONSULTED THE BOARD BEFOREHAND. HE TOLD THEM THAT WE HAD INFORMED THE CANADIANS OF YOUR INSTRUCTIONS, AND HE EXPLAINED THAT CONSULTATIONS COULD BE RESUMED IN SEPTEMBER IN OTTAWA.
3. THE BOARD REACTED SHARPLY, AND LENGTHY DISCUSSION FOLLOWED IN WHICH FOLLOWING POINTS WERE MADE:-
(1) BY MEMBERS :-
(A) IF LONDON WAS TO DECIDE THESE MATTERS, THERE WAS NO POINT IN HAVING A HONG KONG ADVISORY BOARD.
(B) LAST MINUTE REFUSAL OF AUTHORITY TO NEGOTIATE WOULD SEVERELY DAMAGE HONG KONG'S INTERNATIONAL REPUTATION.
(C) HONG KONG HAD ALREADY NEGOTIATED SEVERAL TIMES ON NON-COTTONS AND PARTICULARLY WITH CANADIANS IN 1967 AND 1968 NO NEW PRECEDENT WAS INVOLVED.
(D) HONG KONG PEOPLE KNOW BEST HOW TO SERVE HONG KONG'S VITAL TRADING INTERESTS.
(E) BOARD MEMBERS COULD NOT DEFEND THEIR POSITION VIS-A-VIS HONG KONG INDUSTRY IF NEGOTIATIONS WERE TO BE CONDUCTED ON BASIS OF DECISIONS TAKEN IN LONDON BY PEOPLE UNFAMILIAR WITH HONG KONG SITUATION.
RECEIVED IN
REGISTRY No.51 20 AUG 1969
/WKK6/331/1
CONFIDENTIAL
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