CONFIDENTIAL

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importer of such textiles treats

imports from Hong Kong following

restraints conceded by Hong Kong.

Her Majesty's Government will, of course,

act in respect of Hong Kong only in

accordance with their normal liberal trading

policies and GATT principles.

8. Should problems of overseas trade

relations arise in commodities other than

textiles, the Hong Kong Government will be

free to follow the same general policies,

Mutatis mutandis, as are proposed for

textiles in this despatch.

9.

Because of Her Majesty's Government's

responsibility for Hong Kong's international

trading relations, the Government of Hong

Kong will have to keep Her Majesty's

Government informed about what they are

You should

doing. I rely on you also to keep me

informed of matters affecting the conduct

of separate negotiations by Hong Kong.

in view of the

Moreover, the constitutional position being

what it is, Her Majesty's Government must

reserve their rights in respect of any

action the Government of Hong Kong may

propose to take within the terms of this

delegation of authority. But Her Majesty's

Government will not normally expect to

intervene, and if on occasion it is proposed

that a policy with which the Government

of Hong Kong disagree should be followed

by Hong Kong the rights of Her Majesty's

Government will be exercised only after the

views and advice of the Government of Hong

Kong in a form of words agreed with the

Governor have been considered at ministerial

CONFIDENTIAL

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