DRAFT BRIEF
27/
Please R&P.B. on Canadian
This arrived too late to be used.
Canadian/Hong Kong Textile Negotiations (Note by the Board of Trade
10/9/09.
118
Canadian negotiators visited Hong Kong last month to
work out restraint levels for the Crown Colony's exports to
Canada of cotton textiles and certain man-made fibre gar-
ments. At H.M.G's request, the talks on man-made fibre
garments were interrupted; this has probably caused more
resentment in Hong Kong than in Ottawa. Although it seems
unlikely that the Secretary of State will be troubled,
therefore, it is nonetheless just possible that the
Canadians may inquire about the United Kingdom action.
2. The short answers to any questions about the United
Kingdom role are two-fold.
RECEIVED IN
REGISTRY No.51 11 SEP 1969
HKKU/11/
วว
(a) In the case of cotton textiles, where there is a
special agreement regulating trade between the develop-
ed and the developing countries, Hong Kong has been
given authority to enter into negotiations and conclude
agreements with other countries within the framework
of the rules laid down in the G.A.T.T. Long Term
Arrangement. She has therefore conducted a series of
bilateral negotiations with those of her customers
wishing to restrain imports of cotton textiles. Given
that the broad principles underlying these Agreements
were acceptable both in London and Hong Kong, the
United Kingdom's position in the G.A.T.T. has been
consistent despite the different nature of our
interests (whether our spokesman has come from London
or from Hong Kong). So long as Hong Kong is not a
contracting party in her own right, our trading
partners will presumably rely on us to continue to
reconcile our dual interest in this way in the textile
field generally.
(b) It is the Canadian request on non-cotton textiles
which causes us difficulty. t comes at a time when
the United States (the so called Stans' initiative) is
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