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APART FROM THE INTERNATIONAL ASPECTS, SUCH A DELEGATION OF AUTHORITY WOULD HAVE TO BE DEFENSIBLE TO THE UK DOMESTIC TEXTILE INDUSTRY, AS REGARDS QUANTITATIVE RESTRICTIONS WE WOULD THEREFORE HAVE TO BE FREE TO TREAT HONG KONG IN NON-COTTON TEXTILE MATTERS A) IN THE SAME WAY AS WE WOULD TREAT ANY OTHER SUPPLIER OF SUCH TEXTILES, AND (B) IN THE SAME WAY AS ANY OTHER IMPORTER OF SUCH TEXTILES TREATED IMPORTS FROM HONG KONG FOLLOWING RESTRAINTS CONCEDED BY HONG KONG. WE WOULD, OF COURSE, ACT IN RESPECT OF HONG KONG ONLY IN ACCORDANCE WITH OUR NORMAL LIBERAL TRADING POLICIES
AND OUR OBLIGATIONS BOTH TO GATT AND TO HONG KONG HAVING REGARD TO
HER PARTICULAR STATUS VIS-A-VIS THE UNITED KINGDOM.
5. BECAUSE OF OUR RESPONSIBILITY FOR HONG KONG'S INTERNATIONAL
TRADING RELATIONS IT WOULD BE DESIRABLE FOR THE HONG KONG GOVERNMENT TO KEEP US INFORMED ABOUT WHAT THEY WERE DOING, BUT WE
WOULD NOT EXPECT TO INTERVENE. FOR OUR PART, WE WOULD CONTINUE TO
KEEP IN THE CLOSEST POSSIBLE TOUCH WITH THE HONG KONG GOVERNMENT··
AND WOULD ALWAYS BE READY TO SUPPORT THE HONG KONG GOVERNMENT WHERE
THEY SOUGHT HELP TO SECURE THEIR RIGHTS UNDER INTERNATIONAL
AGREEMENTS. WE WOULD HOPE THAT DIVERGENCE ON MAJOR ISSUES OF POLICY
WOULD IN PRACTICE BE RARE.
6.
ARRANGEMENTS ON THESE LINES WOULD REQUIRE CAREFUL HANDLING
IN THE GATT. SINCE THERE CAN BE NO QUESTION FOR THE PRESENT OF HONG KONG ACQUIRING FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMER-
CIAL RELATIONS IT CANNOT BECOME A CONTRACTING PARTY IN ITS OWN RIGHT. NEVERTHELESS, HONG KONG REPRESENTATIVES ALREADY SPEAK FOR HONG KONG AS MEMBERS OF THE UK DELEGATION IN THE COTTON TEXTILES COMMITTEE. IF THEREFORE THE PROPOSED ACTION WERE EXPLAINED ON THE GROUNDS THAT IT DID NO MORE THAN REFLECT THE REALITIES OF THE SITUATION, AND WAS INDEED THE BEST WAY IN WHICH WE COULD EXERCISE
/OUR
CONFIDENTIAL