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SECRET
5. On seeing Lord Goronwy-Roberts's copy of Mr Rodgers's letter, Mr Galsworthy took the view, with which I agreed, that the final sentence in paragraph 2 could provoke a hasty, adverse reaction from the Governor. This sentence, in so far as it was not actually misleading, seemed to suggest that Hong Kong could expect voluntary cuts on shirt sendings, which the Governor had told the Secretary of State for Trade on 1 December was not a starter. (Mr Andrew, who drafted Mr Rodgers's letter, is understood to have obtained advice direct from the DOI.) An adverse reaction from the Governor would have been particularly unfortunate in view of the growing possibility that no action will be taken against Hong Kong shirts. Moreover, EID(E) and we were concerned that if r Jordan were to learn,from the Governor of what Mr Rodgers had said he would oppose any compromise in the Consultations on the EEC/Hong Kong Textiles Agreement beginning in Brussels on 15 December on the grounds that Hong Kong could make no concessions to the EEC's point of view while the possibility existed of UK bilateral action. In addition, if Mr Jordan knew, the Commission might also come to learn of the possibility of our taking action on Hong Kong shirts. In the event, Mr Galsworthy prevailed upon Mr Rodgers's Private Secretary to telex a revised version of his Minister's letter to Scotland for delivery to the Governor's home. This omitted the offending sentence in paragraph 2 of the original version of the letter and made a consequential amendment to the third paragraph (the Governor has since telegraphed the text of Mr Rodgers's letter to Hong Kong (see FCO tel no 597).
6.
Before speaking to the Governor, you will also wish to see his Personal letter of 10 December to you. The main point the Governor makes is that it seems possible that the Defence Costs Agreement could be disposed of, i e announced, this week provided that:-
(a)
the import control package will not surface until after the New Year;
(b)
that "nothing of much significance" is in it for Hong Kong.
7.
Mr Andrew has asked that you should have a word with him
first before you speak to the Governor.
D.F. Millon
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