TNAG-0630-FCO40-778-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 25

Mr Quantrill

Mr Stewart

CONFIDENTIAL

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HONG KONG AND THE MFA

1. I attach a telegram from Stockholm outlining the current thinking of the Lwedish Government on the line to be taken in their negotiations with textile supplier countries. As is the case within the community, liong Kong is seen as one of the most serious problems and the weaish Government regard the community's position as inevitably to set the pace for wedish negotiations.

2. In a subsequent telegram the Lmbassy in stockholm have suggested that the telegram at lag a should be repeated to the Governor. While it would apparently be proper for us to do so within our remit of protecting Hong Kong's interests, I do not believe that it would in this case be wise to do so.

3.

The Governer has already argued on several occasions that other countries are likely to follow where the community leads and we could not therefore tell him anythin new. I would suggest that the only effect this telegram would have on him would be to harden the lime taken by Long Kong's negotiators and this would be in no-one's interests. it is certain that the negotiations will in any case be tough and if nong one's attitude should be too obdurate there must be the danger of the ne, otiations break- ing down, which would not be in mong aon 's interests.

4.

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1 would therefore recommend that no further action be taken. I have not as yet consulted other departments.

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J Thompson

10 October 1977

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Hon Long & General Jepartment

CONFIDENTIAL