Mr. Carter
Reference....... will (14
will (14)
Hong Kong have not yet replied to our telegram 1672 at (8). But it appears from their telegram to Stockholm at (9) and the reply, as we expected, that they favour Hong Kong as the venue for consultations with the Swedes. The Swedes are still in favour of holding the talks in London.
2. I now gather from Miss Welsh (Mr. Stewart's Principal) that the Board of Trade's view, being divided over the most suitable venue for these talks, and possibly also over the method of conducting them, will have to be decided at Under Secretary level. I have said that we hope that it will be possible to support Hong Kong in her wish to hold the talks "at home" (because the Swedes are the demandeurs and should follow their case). I have also said that we should be very concerned indeed if the Board of Trade wanted to go back on the recent Norwegian precedent and play a direct part in the negotiations themselves.
3. Miss Welsh has said that she will keep us in the picture, but it is evident that an argument lies ahead within the Board of Trade and possibly thereafter between the Board of Trade and ourselves as to how these negotiations are to be conducted. It is thus unfortunate that Stockholm should have already acted on Hong Kong's suggestion and attempted unsuccessfully the sort of preliminary soundings which the first Secretary (Economic has carried out. Unless Hong Kong reply to our telégram 1672, they may find their case going by default in London, where it matters. I have sent a telegram of reminder.
31 December 1968
Mmx.
(H. H. Stewart) Hong Kong Department
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