CONFIDENTIAL
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not only over the conduct of bilateral negotiations between
Hong Kong and other countries but also over major policy issues
affecting international trade; 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. This situation has contributed to the unhappy
state of relations between the United Kingdom and Hong Kong
in recent years.
Recommendation
4. It is recommended that we should make a general delegation
of authority in the field of Hong Kong's external commercial
relations. A draft despatch is attached.
Background
5.
Textiles are Hong Kong's major industry, accounting in
1969 for 47% of all Hong Kong exports. The regulation of
international trade in textiles is a matter, therefore, of
great importance to Hong Kong. The other main items exported
by Hong Kong are electrical goods 10%, plastic toys 7%,
wigs
6% and artificial flowers 3%. xxxxxxxxxxxxxxxxxxxxxxxade
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Cotton Textiles
6.
Towards the end of the '50s imports of cotton textiles
from Hong Kong (which enter the United Kingdom free of duty)
began to cause serious problems for our domestic industry.
To deal with the situation, inter-industry agreements
were drawn up providing for the development of Hong Kong's
trade with the United Kingdom in a reasonable and orderly
manner, having regard to the need to avoid disruptive effects
CONFIDENTIAL