(1E)
(b) Competence:
the argument that free from UK interference
Hong Kong can manage trade relations more efficiently.
(c) Political: the argument that it is politically
intolerable for the Colony's commercial interests to be
subordinated to the UK's when they may be frequently in
conflict.
Each of these arvensen to woexamined in the following notro,
Historical
The Governor apparently used to Mr. Hughes the argument that
until two years ago Hong Kong had the right to conduct its own
commercial relations. Sir L. Monson has asked whether this "right"
ever formally agreed and then formally rescinded.
heither
¡
The answer is that it was not. In June 1968, at a time when
Sweden and Norway were demanding voluntary export restraint in certain
non-cottons from Hong Kong, and the Industries Division, Board of Trade,
were strongly opposed to Hong Kong agreeing, Mr. Hadden-Cave, who was
The negotiating for Hong Kong, wrote an informal note on, management of the
Colony's external commercial relations. The first five paragraphs of
Which
that note (it has no status as a Hong Kong Government paper but which
the Director of Commerce and Industry subsequently agreed was a fair
summary) make it clear that Hong Kong's claim to manage certain areas
of their bilateral commercial relations rested on "practical conven-
ience". Mr. Hadden-Cave's note was in fact a first attempt at reducing
the position to writing and was taken no further, Mr. Sorby subsequently
agreeing that it would be untimely to thrash these issues out. The
August agreed statement to ExCo and the TAB is thus the first and only
attempt to formalise the position.
By itself the historical argument is not strong.
The only area
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