Reference
4
(a) in the same way as she would treat any init
other supplier of textiles, and
(b)
in the same way as any other importer of textiles treated Hong Kong imports.
E Q R
However, the United Kingdom would naturally expect to exercise any rights in respect of Hong Kong in accordance with her obligations under the G.A.T.T. and with her normal liberal trading policies. That is to say, there would be no question of singling Hong Kong out for specially harsh treatment.
It seems to me that arrangements on these lines would be to recognise the emerging realities of the position we are in. Hong Kong wants freedom to manage her own affairs in textiles: her spokesmen told me this in terms during my visit and I believe that it is a reasonable aspiration. But the corollary must be accepted that the United Kingdom should then be as free to look after her own domestic textile interests where imports from Hong Kong are concerned as she is in respect of imports from any other country. That is to say, Hong Kong must recognise that, if she is given this freedom, she gives up her special relationship with the United Kingdom as a dependent territory as far as textiles are concerned and stands to be treated in the same way as others. These new arrangements would only be defensible to the United Kingdom domestic textile industry - and acceptable to the Ministry of Technology - on such a basis of reciprocity.
5
Agreement on this basis would, I think, render unnecessary the draft concordat with Hong Kong which has been the subject of discussion with the Governor. It has, however, implications for Hong Kong's commercial policy, as for our own, and you will no doubt wish to consider and discuss it both with the departments concerned and, later, with Hong Kong.
1 Vic St SW1
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Р.б.в.
P W Cafey Hd/C Division
Ministry of Technology 8 June 1970