IN CONFIDENCE
SECTION 5: TOPICAL ISSUES (EXTERNAL)
ANGLO-HONG KONG RELATIONS
5.1 While in practice Hong Kong enjoys a considerable degree of autonomy in the management of its own affairs, particularly in the
commercial, financial and economic sectors, its constitutional and,
to some extent, its political dependence on Britain is accepted. It is appreciated that without the British connection Hong Kong in its present form would cease to exist. There is a continuing dialogue
between HMG and the Hong Kong Government about how the two
governments should best discharge their responsibilities for the welfare of the population of Hong Kong, although none of the many and far-reaching changes that have been made in Hong Kong in recent years have been imposed from London. They have all been made with
the agreement, and usually on the initiative, of the Hong Kong
Government. However, it is acknowledged that, where UK interests
are involved, the last word must rest with HMG.
a) Multi-Fibre Arrangement
5.2
Some resentment in Hong Kong over what it sees as the UK's protectionist attitude towards international tread in textiles has proved an irritant to an otherwise generally excellent relationship. In particular Hong Kong is unhappy about the operation of its bilateral textiles agreemet with the EC, arguing that restrictions imposed on imports of Hong Kong textiles, the Territory's major export commodity, ultimately benefits developed rather than other developing suppliers, contrary to the principles of the Multi-Fibre Arrangement (MFA). The present MFA was renewed at the end of 1981, and bilateral agreements under the MFA are being renegotiated during
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IN CONFIDENCE