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population of Hong Kong as circumstances change, nothing has been imposed on Hong Kong and the plans for further labour and social reforms being carried out by the Hong Kong Government are in the best interests of the local population.
Commercial Issues
19. UK trade with Hong Kong is substantially in deficit and this trend has increased rapidly over recent years. The UK's share of Hong Kong's market has declined from 11% ten years ago to under 5% in 1976. However, the UK and Hong Kong Governments, along with Hong Kong's commercial establishment, are alive to the need to ensure that the UK's political links with Hong Kong are backed by strong commercial links, and the two governments agreed in consequence late last year that a joint study group should be established in Hong Kong to consider how the UK's export performance might be improved. The UK is Hong Kong's third largest market (10% of her total exports in 1976). Nearly 70% of Hong Kong's exports to this country are made up of textiles and clothing, which are currently restricted by the 1975 EEC/Hong Kong textiles agreement. concluded under the GATT Multi-Fibre Arrangement (MFA). The MFA is due for renegotiation this year.
Corruption
Public
20. There have for many years been allegations of corruption in Hong Kong and, in particular, in the Royal Hong Kong Police. attention focussed strongly on this problem in 1973 after Chief Superintendent Godber's escape to this country, and led to the establishment of an Independent Commission Against Corruption (ICAC) in February 1974. The Commission's functions are to investigate complaints of corruption, to take steps for its prevention and to enlist community support for its elimination. There was some initial pressure from U.K. critics of the Hong Kong Government for HMG to appoint a Commission of Inquiry to look into the whole question of corruption by Ministers declined to adopt the proposal on the grounds that the ICAC must be given a proper opportunity to carry out t
In fact, the ICAC has proved to be a vigorous body and there has been criticism during the past year that its investigative methods pose a threat to personal freedom. While this problem is being watched, it was of course inevitable that the Commission would provoke criticism in proportion to its effectiveness.
· task.
Death
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