TNAG-0238-FCO40-274-Trade-relations-between-EEC-and-Hong-Kong-1970 — Page 189

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4. IN THE CONTEXT OF SUGGESTING THAT WE WERE OBVIOUSLY

QUITE FREE TO REJECT THE EEC OFFER AS UNACCEPTABLE, ERNST

HINTED AS USUAL AT SUBSEQUENT EEC CONSIDERATION OF

''OTHER ACTION''.

5. I DETECTED IN ERNST'S ATTITUDE A SOMEWHAT DIFFERENT APPRECIATION OF THE GENEVA ADJOURNMENT FORMULA THAN OURS

AS IMPLIED IN THE RECORD. THIS ATTITUDE MAY WELL BE TACTICAL

AND INFLUENCED BY CURRENT PRESSURES, FOR EXAMPLE, FROM THE

JAPANESE.

6.

NEVERTHELESS IN VIEW OF THE ACTUAL CONTENT OF THE

GENEVA OFFER, OF THE TIME THAT HAS SUBSEQUENTLY ELAPSED, AND OF THE POSSIBILITY OF FURTHER MARGINAL GAINS IN AN

IMMEDIATE SECOND (PERHAPS FINAL) ROUND OF FORMAL NEGOTIATIONS HERE IN BRUSSELS, I WOULD ADVOCATE COMPLIANCE WITH ERNST'S

SUGGESTION IF POSSIBLE. IT WOULD SERVE TO SHOW OUR GOOD FAITH

NOT ONLY TO ERNST BUT ALSO TO THE MEMBER STATES, WHO WILL NO

DOUBT BE REPRESENTED ON SUCH AN OCCASION.

7. MY VIEW IS BASED ON THE ASSUMPTION THAT WE WOULD BE

READY AND WILLING TO MAKE A POSITIVE AND DETAILED COUNTER-

OFFER.

8. (I REFERRED TO OUR UNILATERAL ACTION ON THE GERMAN CT

EXTENSION BUT THIS MADE NO REAL IMPRESSION ON ERNST).

FCO PLEASE PASS IMMEDIATE TO GOVERNOR HONG KONG AND TO UKMIS GENEVA FOR JONES, PRIORITY TO HONG KONG GOVERNMENT LONDON OFFICE AND SAVING TO FCO DEPARTMENTS.

PASSED SAVING TO UKDEL EEC.

SIR J. BET TH

[REPEATED AS REQUESTED TO GOV. H.K. AND GENEVA]

[COPIES SENT TO H.K. GOVT. LONDON OFFICE] EUROPEAN ECONOMIC AND POLITICAL DISTRIBUTION: ADDITIONAL DISTRIBUTION:

FRAME

E.I.D.

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