CONFIDENT IAL
DRAFT
DESPATCH
Type 1 +
From
To:-
TOX Xexmix
Confidential.
KINGZLX Kuchsvifcxx
PRIVACY MARKING
In Confidence
His Excellency
Sir David Trench, GCMG., MC.,
Government House,
Victoria,
HONG KONG.
Telephone No. & Ext.
Department
I have the honour to refer to the question of
relations between Her Majesty's Government, and the
Government of Hong Kong in the matter of trade in textiles. For some years now it has been clear that the interests of Hong Kong as a major exporter of
nickhard textiles, both cotton and non-cotton, are not the same
as those of the United Kingdom who, although herself a substantial exporter, is primarily a major importer and domestic producer of such goods.
2.
Relations in the field of cotton textiles have
evolved gradually over the years and cottons as such
no longer present problems. I have now decided that
it would be in the interests of both the United
Kingdom and Hong Kong if the Government of Hong Kong were to exercise the same degree of independence of action on non-cotton textiles as at present on cotton textiles; and I hereby give you authority to act within the terms of this despatch.
3.
The
Relations between Her Majesty's Government and the Government of Hong Kong in the field of cotton
textiles are based on the provisions of the "Heads of Agreement" negotiated in and on the terms of the Long Term Arrangement regarding international trade in cotton textiles (LTA). United Kingdom accepted the LTA on behalf of Hong Kong and, with the approval of Her Majesty's Government, the Government of Hong Kong have negotiated bilateral agreements for restraint of trade in cotton goods with all the major importing countries. Moreover, the countries party to the LTA are members of the Cotton Textiles Committee of the General Agreement on Tariffs and Trade (GATT) and Hong Kong's representatives attend meetings of this Committee as members of the United
/Kingdom...
(118281) Dd. 391599 1,500M 2/69 Hw.
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