IN CONFIDENCE
bilateral textiles agraeement 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). Negotiations to extend the present MFA began in Spring 1982, and on 30 November 1982 an agreement setting yearly quantitative restraints on Hong Kong exports to the EC was reached.
This will last until 1986.
b) Defence
5.3 The garrison in Hong Kong consists of five infantry battalions
(four Gurkha and one British), a Gurkha engineering squadron, five
naval patrol craft and two squadrons of helicopters. There is
provision for ad hoc short term reinforcement. A new Defence Costs
Agreement was signed in October 1980 and came into effect in April 1981. It will run for seven years initially, and will be renewable
for further periods of five years on the same terms unless varied.
Hong Kong's contribution to costs under the Agreement remain at 75%,
but a new, comprehensive system of accounting costs was introduced which, in effect, increased Hong Kong's share by more than 50%.
Part of this reflects the enlargement of the British garrison in Hong Kong by one infantry battalion.
c) Nationality Act
5.4 The British Nationality Act, which came into effect on 1
January, provides for a separate category of "British Dependent
Territories' Citizenship" (BDTC). Hong Kong, which was unhappy
about the abandonment of the unitary Citizenship of the United
Kingdom and Colonies (CUKC) would have preferred a title which
emphasised more strongly the Territory's links with the UK. Amendments were, however, introduced in order to allay some of Hong Kong's fears over the Act, by permitting registration for BDTC3 after five years' residence in the UK, and allowing discretionary registration by the Home Secretary of Dependent Territories' Crown