TNAG-0242-FCO40-278-Conduct-of-Hong-Kong-commercial-relations-1970 — Page 152

Whether or not this would require deletion of the Governor's proposed amendment- to para 4 of the statement is "Something we would

but on policy a common line (decided in advance) must be pursued.

Any statement covering Hong Kong's representation in international organisations would have to be stated in these stark terms

either in the existing draft statement (along lines proposed by Melville in his first letter) or in a quite, separate statement. We would not be surprised to find the Governor shy off both these courses, taking the view that he would have the utmost difficulty presenting such a formulation to his unofficial advisers. The alternative is to exclude Hong Kong's representation in international organisations completely from the statement by an amendment of the heading to read: "Hong Kong's Bilateral Commercial Relations (excluding Hong Kong/UK Trade)" and deletion of the Governor's amendment to paragraph 4 of the

statement and, as Melville now proposes, to have no written concordat beyond the field of bilateral relations. A We favour this as the most practicable course and are inclined to

Jam

also have to consider). I think that when the alternatives are put to

the Governor he will agree. From something the Governor said at the conclusion of our discussions we have reason to believe that he would be prepared to consider the exclusion of GATT and other international organisations from the scope of the present draft statement.

Melville's later letter might be construed as opposing any written formulation on this subject, even one restricted to bilateral relations. If that is the case, then I fear we shall be unable to meet his views;

it

is no longer practical politics to abandon this exercise altogether.

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NOTHING TO BE WRITTEN IN THIS MARGIN

I have set out these tentative thoughts at some length, but in my view it would be more fruitful to have a further meeting than to continue our exchanges in correspondence. you agree, I should be glad to arrange a Purther meeting. If Melville (who, I

understand, will be in London this week, principally for talks with your department)

/ could

If