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something within the control of the central authority and was stopped
dead. It did conflict with any other policy.
Leonflict
Q. You said you tried to impress on them the danger of competing with Hong
A.
Q.
A.
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Kong. Did they seem fully aware of that and were they fully aware of
the danger of putting huge amounts of low cost goods on the world markets
at the time when the markets in importing countries are tightening?
that
H.E.: Yes, I think they do know the difficulties. As you know, they are negotiating for quotas to the E.E.C. and are already engaged in negotiations for quotas for America and I asked them very strongly to bear in mind Hong Kong's interests here and a quota at Hong Kong's expense would be of no
benefit to China at all. Of course, they could not commerciy give a commitment on thing of this sort. They said they would bear this in mind. It does not apply to quotas other countries.
In discussions, Sir, was Hong Kong's role in the development of oil in the South China Sea as a support base discussed?
H.E.:
No, there was nothing about off-shore development. There is research for oil going on in the Pearl River Estuary area and there is an
oil field in south Guangdong.
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Private notes are available after approval.