CONFIDENTIAL
Reference
35)
MR. LAM (BOT)
c.c. Dep.Sec.D (Mr.Vinter) o.r.
Hd/EI
Hd/CT1
Mr Meeres)
(Mr. Gregory)
на/стг
CT1b
(Mr McEnery)
(Miss Welch)
Mr. Hughes
Mr. Sanders
BOT Secretariat BOT/CRE
Mr. Dunnett
BOT/CRE
Mr.Wilford FCO
Mr. Gallagher FCO
Mr. Heath
FCO
Mr. Laird
FCO
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 Hong Kong to proceed from time to time along lines which she regarded as inimical to her own interests. The 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 hor non-cotton textile affairs independently, as she already does her cotton textile affairs. We would 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 independently in all textile matters; and it
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)