TNAG-0246-FCO40-282-Imports-of-textiles-from-Hong-Kong-to-UK-1970 — Page 58

are other arguments to support this solution.

There

A

The Colony has not advanced).

ز

7. But the strongest argument in Hong Kong's favour is a moral

(but one one of which Hong Kong themselves are unaware. We know, and the

Board of Trade do not contest, that HMG's representative at the

negotiations actually succeeded in restraining Hong Kong at a

level of exports which, to use his own later words, "gave away

only 40% of the margins set by the negotiating limits" It

would be arguable whether this was in any case a proper approach

to trade negotiations with a dependent territory for whose wel-

fare we have responsibility. But whether this is so or not, to

a

difference of 3% in the

•

disagree over growth rate, when the basic export levels agreed where so much lower than they might have been, is elearly wrong.

8. The Board of Trade have further stated that if Hong Kong

continue to maintain that the "offer" was not accepted at the

time it was made, there would be a strong case for withdrawing

it altogether. This justifies the statement that at the worst

the entire agreement could be endangered. Apart from the "take

it or leave it" manner in which (unintentionally, for sure) the

offer was made it must be reported that Hong Kong formally

recorded

recorded their disagreement with these proposed growth provisions on the 27" September. Not until the 20th December dict we take our stand in the month following the negotiations There was no disagree-

on the offer.

As dary Med matters.

ment with them for three months thereafter. In fact, As the end

of 1968 approached, the Governor, who had to allocate the 1969

quota in order to allow trade to proceed normally, was obliged to

telegraph his assumption that the proposals in the exchange of

telegrams and his despatch would eventually be confirmed. This

is not a background against which it would be possible, in equity

and good faith, to "withdraw" anything, when Hong Kong has

voluntarily restrained her trade with us, to her own detriment,

for a year already in accordance with the agreement.

9.

In

fact

A further complication has now arisen, from Hong Kong's point

have failed of view, in that her exports of wide sheeting and sheets are most

-unlikely to reach 95% of their ceiling levels this year, as the-

following→