Reference...
CONFIDENT IAL
58
Mr. Hale
56
Hong Kong telegram 421 : Cotton Textiles
The draft reply to the above telegram has now been agreed by MinTech (Miss Welch) and by Messrs. Nicoll and Dunnett. The latter said that CRE regarded the telegram as a most helpful exercise in reminding the Community of the GATT implications of their dealings with Hong Kong The only outstanding clearance is EID. Will you please pursue this first thing on 2 July and despatch the telegram as soon as you can subject to what follows.
2. As I have told you already, Mr. Hannay telephoned from the UKDel EC this evening to ask us very pressingly indeed not to send instructions on the lines we had in mind. He felt that the Community would take such an approach very much amiss, especially in view of the fact that only two weeks ago we had told them that they should address their proposal for negotiations with Hong Kong to the Hong Kong representative and not to the UK Delegation or the British Embassy. I told Mr. Hannay that however the Community might respond to his communication - and we left it to him to modify the phrasing of our instructions to meet any local objections he might see there was no gain-saying the fact that constitutional responsibility for Hong Kong rested with IMG. It would be helpful to us to have it on record a telegram in the sense of this draft reply which would seem to Hong Kong to be a helpful response to their telegram 421.
3. Mr. Hannay was adamant that instructions on these lines would be embarrassing to the Delegation and likely to lead to further difficulties with Hong Kong. /e therefore left it that I would not despatch the telegram until we had heard again from him whether by telephone or telegram.
Before the telegram is despatched, therefore, you need both clearance from EID and further clearance with Mr. Hannay.
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(M.E.Heath) Commodities Department
1 July 1970.
CONFIDENTIAL
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