TNAG-0243-FCO40-279-Conduct-of-Hong-Kong-commercial-relations-1973 — Page 46

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Mr. Kinnear (Hong Kong Department)

Commercial Relations with Hong Kong

Mr. Dunnett telephoned on 8 September to let me know how matters stood in the Board of Trade with regard to the proposal to authorise the Governor of Hong Kong to negotiate for Hong Kong on non-cotton as well as cotton textiles, and other commodities.

2. As Mr. Dunnett had indicated at the meeting in my room on 2 September, he had reported to Mr. Hughes his somewhat hesitant readiness to accede to our case for allowing the Governor of Hong Kong authority to negotiate on all commercial matters concerning the colony, subject only to the overriding responsibility of H.M.G. for Hong Kong. He wished me to know that Mr. Hughes was inclined to share his, Mr. Dunnett's, doubts about this operation and Mr. Hughes had instructed him to play it long. Mr. Dunnett did not wish there to be any misunderstanding of the position he had taken up at the meeting. He therefore suggested that when we sent the Board of Trade the revised text of the draft despatch to the Governor of Hong Kong we might consider doing so under cover of a letter to Mr. Hughes. Those Departments of the Ministry of Technology not concerned with textiles

(i.e. in practice the electronic and radio people) were reluctant to concede more to Hong Kong than seemed absolutely essential.

3.

As you will remember from our meeting, we managed to obtain the admittedly somewhat grudging and unenthusiastic agreement of Messrs. Dunnett and Gregory to the revised text of the Instructions to the Governor. It is clear from what Mr. Dunnett says that minds are changing in these Departments. Clearly therefore the sooner we can send them the revised draft despatch and secure their final agreement the better. In the circumstances described by Mr. Dunnett you may think it appropriate to ask Mr. Wilford to write to Mr. Hughes. I will gladly ask Mr. Gallagher if he will do so.

(M. E. Heath) Commodities Department 9 September, 1970.

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