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5.
Turning now to non-cotton textiles, it is necessary to devise arrangements satisfying two criteria, viz: (i) the Government of Hong King 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. Although I hope that, as in the Cotton Textiles
Committee, arrangements can be worked out on
the spot whereby the expression of conflicting
views can usually be avoided, there will be
occasions on which the representatives of
Hong Kong at international gatherings may wish to express views conflicting with those of the representatives of the United Kingdom. It is, however, widely known already that on
the issue of non-cotton textiles, Hong Kong
favours different solutions from the United
Kingdom. What I am proposing will, therefore, be explained on the grounds that it does no
Sian reflect the realities of the trading pation and is indeed the best way in which Her Majesty's Government can exercise their responsibilities for Hong Kong in the interests of the Colony.
6. Apart from the international aspects, this delegation of authority will have to be defensible to the United Kingdom textile industry. As regards quantitative restrictions, Her Majesty's Government will, 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 the obligations both to GATT and to Hong Kong having regard to her particular
status vis-a-vis the United Kingdom.
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