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Clash of Autorents in the rigid of International Textile Policy
Our approach to Europe
The Handling of Hong Kong s Affairs
There is a strong attitude in the Colony that Hong Kong knows
best what is good for it and particularly for its rather unique
economy.
8.
There has been a clear emergence of a clash of interests
in the field of international textile policy between Hong Kong
as a major exporter of textiles and the UK as a major importer
and domestic producer: this has led Hong Kong to press for
the maximum possible freedom in the conduct of the Colony's
commercial relations and proposals providing for a delegation
of authority are now under consideration. To the extent
that Hong Kong "trades up" (1.e. produces goods of higher
quality and value) so the Colony will more and more become
a competitor of the United Kingdom both in the UK domestic
market and also in overseas markets, particularly in textiles.
9. Another factor is the pronounced European stance of our
policy in recent years and its consequences for Hong Kong.
One of the consequences of our membership of EFTA is that a
wide range of products from EFTA countries now enter the UK
duty free whereas on some of them Hong Kong is charged duty.
(Hong Kong is particularly worried about low-cost Portuguese
competition in textiles). If we obtain entry into LEC,
Hong Kong will almost certainly be shut out from membership on
an associate basis and, losing its Commonwealth preference,
will have to compete in the UK market across the EEC's common
external tariff.
10. There has been a certain reaction in Hong Kong to the
successive mergers which led to the formation of the Foreign
and Commonwealth Office. Somewhat unreasoning fears were
felt, among officials as well as unofficials, that those who
handled Hong Kong's affairs in the merged office would have
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