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W(B)L 51-7406

therefore, 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 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.

7. 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 doing.

I rely

on you also to keep me informed of matters affecting the conduct of separate negotiations by Hong Kong. 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 have been considered at Ministerial level. Apart from that, Her Majesty's Government will continue to keep in the closest possible touch with the Government of Hong Kong and will be ready

in appropriate circumstances to support the Government of Hong Kong where they seek help to secure their rights under international

agreements.

8. It is my hope that the practice, now taken for granted in the Cotton Textiles Committee, will quickly come to be accepted

/ in meetings

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