Management of Hong Kong's External Commercial Relations

The constitutional position is that HMG is

responsible for the conduct of Hong Kong's external relations (including commercial relations).

2.

Nevertheless, HMG have recognised that in

matters not affecting considerations of British

international commercial policy the Hong Kong Government should determine the course of, and where practicable be

responsible for the conduct of, Hong Kong's external

commercial relations.

3.

where considerations of British international

commercial policy are involved the Hong Kong Government

may as appropriate, and in full consultation and

association with HMG, exercise a similar responsibility, acting within the framework of policies agreed with

HMG and in conformity with treaty obligations.

4.

So far as non-cotton textiles are concerned, HMG recognise that with their agreement, the Government of Hong Kong have been following a policy, when a situation has arisen such as one in which Article XIX of the GATT might otherwise have been invoked, agreeing to export restraint on non-cotton textiles where it seemed in the

best interests of Hong Kong to do so.

5.

In the light of recent international developments

in the sphere of textiles, HMG are at present urgently reviewing their policy as it affects both the UK and Hong Kong, and in doing so they will take full account of the representations recently made to them by the Government of Hong Kong. They will continue to keep in touch with the Hong Kong Government so far as the interests of that

Government are concerned.

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