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light of circumstances, consideration would also be needed
of whether Hong Kong's assets should be brought under the
"custody" of H.M.G. For swift emergency action, however,
blocking under the Emergency Laws Act as proposed 18
appropriate and adequate.
Trade
13. The disruption created by a forced evacuation could
be expected to prevent new trading transactions between
the U.K. and Hong Kong in the short run. The blocking of
Hong Kong accounts would moreover make such new transac-
tions difficult and unattractive, if not impossible.
H.M.G. would eventually however have to consider policy on
imports from Hong Kong, taking care to avoid action which
might place an unnecessary burden on the import of goods
belonging to evacuees or on traders with goods in transit.
It would be necessary in due course to treat Hong Kong
exports as if they emenated from China. This woulä
involve the removal of Hong Kong from the Commonwealth
preference area and the imposition of import licensing for certain goods, Consideration would also have to be given to the consequences for the import arrangements for cotton textiles.
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