10.
(e)
any agreement to be co-terminous with the Hong Kong/US cotton agreement under the LTA, i.e. to end in September, 1973.
Hong Kong was, according to the brief, prepared to accept a restraint on fabric in the last resort. However, after their discussions with me, I feel that they may well make exclusion of fabric a sticking point also.
11.
There is some evidence that Kennedy's tactics will be to wrap up agreements so far as is possible with Taiwan and South Korea, with a confidential understanding that they will eventually be offered, on unresolved issues, terms no less favourable than may be agreed with Hong Kong.
12. This puts Hong Kong in the hot seat. And in view of the tough negotiating position Hong Kong is adopting, I should be very surprised if Kennedy is able to reach agreement with them. What Hong Kong might wish to do after that, e.g. by way of a unilateral declaration, has not yet been fully worked out.
UK representation at forthcoming Hong Kong/Kennedy negotiations
13. Hong Kong is facing some very difficult, and perhaps rather lonely, decisions, which she will have to take in consultation with her Textile Advisory Board. I told Hong Kong that in my view there would be no advantage in my returning for the postponed negotiations and would suggest that nobody should come from the UK unless Hong Kong, in the light of developments, itself requested a UK representative.
JK Metery
JH McEnery
CT 2
14 June 1971
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