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delegation.
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They have an opportunity to present Hong Kong's
views independently but in practice the expression of conflicting
views by United Kingdom representatives and representatives of
Hong Kong is avoided. These arrangements reflect the fact that
Hong Kong, being a dependent territory, is not a separate member
of the GATT, and is represented in the GATT by the UK delegation.
Hong Kong could become an independent member of the GATT only if
she were declared to have full autonomy in the conduct of her
external commercial relations.
Non-Cotton Textiles (Man-made fibres and Wool)
8.
Apart from the United States all major developed countries
restrict imports of some non-cotton textiles from Japan. In the
past three years Korea, Taiwan and Hong Kong have all been using
Japanese yarn and cloth for knitting and making-up into garments
and pressure has built up to restrict this trade. The USA at
one time suggested that the LTA should be extended to cover all
textiles and under threat of arbitrary action by the importing
countries concerned Hong Kong has given voluntary undertakings
outside the GATT to restrain exports of several types of non-
cotton garments to Canada, Sweden and Norway. These arrangements
were not altogether disadvantageous to Hong Kong, because they
raised prices and guaranteed that she would continue to enjoy
a large share of the markets; but they have caused HMG
considerable embarrassment on the principal ground that they
constitute undesirable precedents for the extension of LTA-
type restrictions not only throughout the whole field of textiles
but to other commodities. Extension of LTA type restrictions
would be contrary to British trading interests, and the Unite
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