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complete independence.
And there are the political
objections to conceding an obvious measure of independent authority to which China might take exception
J
a point which
we discussed with the Hong Kong representatives in talks some when three years ago about our entry into the Common Market;
it was suggested that since we might not be free within EEC to defend Hong Kong's interests (e.g. in GATT) Hong Kong might need to be given an independent role in commercial relations the Hong Kong representatives themselves came to the conclusion that this might be politically unacceptable.
20.
The department also foresees possible serious
di sadvantages for Hong Kong in any formal independent status. The Colony carries no weight in a negotiating sense and has not it could the power of economic retaliation to command respect; find itself "pushed around" without U.K. backing. And our fear is that there would be little disposition in the Board of Trade (or anywhere outside the F.0.0.) to look upon Hong Kong as any different from an independent Commonwealth country
with all that this could mean for Hong Kong's special trading ties with
this country.
It
21. There seems no good reason as yet to jettison the formula which has operated quite satisfactorily until recently. may need re-writing in a more precise and detailed manner; but the basic proposition remains sound and should continue to be workable namely that, where U.K. as well as Hong Kong interests are involved, Hong Kong carries the responsibility for the conduct of its commercial relations wherever feasible, acting in association ith H.M.G. where this is desirable and after the course to be pursued has been agreed in consultation with H.M.G. It may for example be desirable to ensure that Hong Kong alone carries the responsibility for the actual conduct of trade negotiations (H.M.G. not being represented), as distinct from joint association in preliminary consultations and discussions with third countries leading up to the decision
hether or not to negotiate (e.g. the talks on non-cottons with
/the
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