CONFIDENTIAL
Hong Kong from the application of the
Agreed Minute to the U.K. Overseas Territories -
China is very
for political reasons.
sensible to any indications that we might
be formally conceding an independent status
to Hong Kong • If Hong Kong is treated
differently from other U.K. Overseas Territories Undoubtedly
in this case, it would come to the notice
of China, with possibly serious consequences.
From what I have said, it follows that
amendment of para. 6 of the brief on
paragraph 1 (of the Agreed Minute) will be
necessary.
The
In para. 4 of the brief on para. 1
(of the Agreed Minute) it is stated that
"the Hong Kong Government conducts an
independent economic policy and negotiates
its own trade arrangements". We would
prefer the words "like Hong Kong Government
exercises a wide measure of delegated
control over economic policy and in practice
negotiates its own trado arrangements".
This makes it clearer that Hong Kong has
no "de jure" commercial independence.
With reference to paragraph 3 of the
brief on para 4 (of the Agreed Minute),
I believe we are correct in thinking that
the Benelux countries are at present
obliged, under the Long Term Arrangement on
Cotton Textiles, to consult Hong Kong on
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CONFIDENTIAL
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