3

7.

As the underlying difference of opinion

over textile policy continued during the following year, the Ministry of Technology in its turn originated a draft despatch which, unlike earlier versions, confined both the problem, and the suggested solution, to textiles. This was sent to Hong Kong by the F.C.O. in August 1970; a copy is at Enclosure III. Hong Kong's reaction (by

telegram 525 at Enclosure IV) sought to extend the proposal in this draft outside the realm of textiles, suggesting that the Hong Kong Government should be free in respect of other products to "follow the same general policies, mutatis mutandis, as are proposed for textiles".

8.

Since that date, there have been only two developments of note of which I am aware. The first was

an intervention by Sir Eugene Melville from Geneva, pointing out :-

9.

(a) that the problem of the conflict of views over textiles

might be settled in the mult- ilateral (G.A.T.T.) sphere by seeking separate representation for Hong Kong on the Cotton Textile Committee of the G.A.T.T., and in any other G.A.T.T. body set up to deal exclusively with textiles;

and,

(b) that in the light of experience in implementing the first suggestion, consideration should be given to separate G.A.T.T. membership for Hong Kong under Article XXVI: 5(c)

but after Britain joined the European

Communities.

The second development was that the Board of Trade commented to the Foreign and Commonwealth Office on the suggested draft despatch by

(a)

emphasizing paragraph 6 of the draft ;

cont/..

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