TNAG-0238-FCO40-274-Trade-relations-between-EEC-and-Hong-Kong-1970 — Page 169

CONFIDENTIAL

PRIORITY BRUSSELS TELEGRAF

RECOIN 10.

REGISTRY No.51

CYPHER, CAR A

PRIORITY BRUSSELS TO FOREIGN AND COMMONWEALTH OFFICE

0.32 TO HONG KONG OF 17 SEPTEMBER 1970

dol

CONFIDENTIAL [NEUTRAL]

18 SEP 1970

HIILG/6

FOR

ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NO. 32, OF 17 SEPTENBER 1970 AND RFI PRIORITY TO UKMIS GENEVA/FOR JONES AND SAVING TO

UKDEL EC, FCO AND HONG KONG GOVERNMENT LONDON OFFIC

FROM DODGE

YOUR TELEGRAM NO. 9: COTTON TEXTILES

NEX

REF.

70

I CONVEYED YOUR POINTS TO ERNST AND AT LEAST SHIFTED HIM

A LITTLE FROM THE STANDPOINT THAT ACTUAL NEGOTIATIONS MUST

TAKE PLACE IN THE LATTER HALF OF THIS MONTH OR HONG KONG

WILL FACE THE CONSEQUENCES''.

2.

1)

HE IS STILL ABSOLUTELY RIGID ON THREE MAJOR POINTS:

THAT THE NEXT ROUND MUST CONSIST OF FORMAL NEGOTIATIONS

REPEAT NEGOTIATIONS:

}

THAT IT CANNOT TAKE PLACE IN HONG KONG:

3)

1

THAT BEFORE THE END OF SEPTEMBER WE MUST FORMALLY ACCEPT OR REJECT HIS OFFER OF FORMAL NEGOTIATIONS. (HE CLAIMS

THIS TO BE A MATTER OF PRINCIPLE IN CONNECTION WITH THE VALIDITY OF THE CURRENT CTA AND OUR GERMAN BILATERAL).

3. AS TO FACTUAL JUSTIFICATION ERNST AGREED TO DO WHAT HE

COULD TO PRODUCE SUCH STATISTICS ETC. AS WERE AVAILABLE EITHER IN ADVANCE, IF POSSIBLE, OR ACTUALLY AT THE SUBSEQUENT NEGOTIATIONS. HE FIRMLY REJECTS THAT THEIR PRODUCTION IS AN

AGREED PRE-CONDITION OF FORMAL NEGOTIATIONS.

4.

ERNST AGAIN STRESSED FORCIBLY AND AGGRESSIVELY THAT

HONG KONG WAS BEING UNIQUELY DIFFICULT AND IMPLIED THAT

THERE WERE ALSO DANGERS FOR US OUTSIDE THE FIELD OF COTTON

TEXTILES IN MAINTAINING SUCH A RIGID ATTITUDE.

CONFIDENTIAL

/5. ASSUMING