10

Reference

Dr. Willow

40

MR. LAM (BOT)

c.c. Dep.Sec.D (Mr.Vinter) o.r.

(Miss Welch)

Sir. L. Moon.

BOT Secretariat Since the 29K market is already

Ha/EI

Mr Meeres)

Ha/CT1

(Mr. Gregory,

Ha/CT2

Mr McEnery)

CT1b

Mr. Hughes

Mr. Sanders

BOT/CRE

Mr. Dunnett

BOT/CRE

Mr.Wilford FCO

Mr. Gallagher FCO

Mr. Heath

FCO

Mr. Laird

FCO

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restricted and

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Koncarian has ug USA femal have thought that they would accepte M: Crazy's proposals. No imbrthe will be meetings

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Wilford 1/%

UNITED KINGDOM RELATIONS WITH HONG KONG ON TEXTILES

Since the recent visits by Mr. McEnery and myself to Hong Kong, I have been considering again the United Kingdom's relations with Hong Kong in textile matters.

2 It has for some time been evident that these relations were, to say the least, uneasy. The interests of the United Kingdom and Hong Kong, while having more in common than is sometimes supposed, nonetheless inevitably diverge at important points; and we have been in the invidious position of trying to influence liong Kong to proceed from time to time along lines

The which she regarded as inimical to her own interests. result has been angry reactions from the Governor and a disproportionate involvement by ourselves in the details of Hong Kong's bilateral negotiations with her customers.

3 I do not believe that it is in the interest of either the United Kingdom or Hong Kong that this state of affairs should continue. I should therefore like to propose a modification of the existing relationship on the following lines:-

(i)

(ii)

We should in future allow Hong Kong to manage her non-cotton textile affairs independently, as she

We would already does her cotton textile affairs. naturally hope that, in her own interests, she would continue to keep us closely informed about what she was doing but we would not attempt to interfere.

We would make it clear to other interested parties and to the G.A.T.T. that Hong Kong was now acting

and it independently in all textile matters; followed that views expressed by her did not necessarily reflect the views of the United Kingdom.

(iii)

In practice, we would continue to hold close discussion with Hong Kong and would hope that divergence on major issues of policy was rare.

Moreover, we would stand ready to support Hong Kong where she sought our help to secure her legitimate rights under existing international agreements.

(iv)

In the circumstances of this new independence by Hong Kong, the United Kingdom would be free to treat Hong Kong in textile matters:

/(a)

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