NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

CONFIDENTIAL

-3-

Majesty's Government to undertakings for which

their prior agreement should, in your view,

be obtained, I confirm that a statement to

the effect that the Government of Hong Kong

or Administrative Department concerned is

acting with the authority and consent of

Her Majesty's Government may in appropriate

instances be included in the preamble.

6.

Turning now to non-cotton textiles,

it is necessary to devise arrangements

satisfying two criteria, viz:-

7.

(i) The Government of Hong Kong can

reach such agreements on non-cotton

textiles as they wish with other

Governments, and

(ii)Her Majesty's Government will not

find themselves prejudiced in pursuing

their own commercial policies by the

fact that they will be regarded as

having jeopardised their own position

by authorising the Government of Hong

Kong to reach such agreements. As

regards international gatherings at

which non-cotton textiles may be

discussed I hope that, as in the Cotton

Textiles Committee, arrangements can

be worked out on the spot whereby the

expression of conflicting views can

191101ly be avoided.

In respect of United Kingdom import

policy Her Majesty's Government will therefor

have to be free to treat Hong Kong in non-

cotton textile matters:

(a) In the same way as they treat any

other supplier of such textiles, and

(b) in the same way as any other importer

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