CONFIDENTIAL
No. Stewent
45
Mr. Gallaher
U.K. Textile Council Keport
We have been put on the spot in our relations with the Governor of Hong Kong because two leaks from Board of Trade sources have put Hong Kong on notice that a decision on the Textile Council's tariff recommendation is imminent.
2. Hr. Dan Jones M.P. (P.P.9. to the President) has hinted strongly to the Hong Kong Association that if it was intending to make representations about the recommendation it should make them as soon as possible and in any case before the Summer Recess, This was passed on by the Association to the liong Kong Government Office who did not fail to see the significance. In Geneva a Board of Trade official told a Hong Kong official of the Commerce and Industries Dept. that a paper had gone forward to Ministers with a recommendation in favour of the adoption of the tariff. Hong Kong must be wondering how it is that we in the F.C.0. who are responsible for looking after their interests are not giving them this information.
The situation is complicated by our knowledge (through the Hong Kong Government Office) that the Governor is considering the despatch of a delegation (composed probably of some unofficial members of Councils and industry representatives) to make representations about the Textile Council report. We learnt this when we are asked to use our good offices to dissuade the Hong Kong Association from jumping the gun with its own representations; apparently Hong Kong is not ready to send a delega- tion just yet because the industry's study of the report has not been completed.
b. In these circumstances, I feel that it is our duty to give the Governor some information regarding the imminence of a decision so that he can lay his plans accordingly. You may recall my concern that we would not apparently be able to consult liong Kong formally about the Textile Council's tariff recommen- dation before Ministers reached a decision thereon (paragraph 9 of my minute of 2 July to Er. Whitehead, copied to you). Obviously we still cannot do so. But at least we should give the Governor an oppor- tunity to play this as he sees fit, off his own bat, and for this purpose he should have from us some authoritative indication of the timing of a decision.
5. I attach a draft telegram which, like our out- going telegram No. 401, is marked "Personal for Governor" in order to restrict the use which is made of it.
(W. S. Carter)
Hong Kong Department
9 July, 1969
Copy (with attachment) to:
Sir Leslie Monson
#r. Preston (Commodities Dept.)
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