TNAG-0138-FCO40-174-Conduct-of-Hong-Kong-commercial-relations-1969 — Page 127

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6.

TERESTS OF THAT GOVERNMENT ARE CONCERNED.

THEY DO NOT WISH TO PROPOSE ANY CHANGE IN THE MEANTIME IN

TIC POLICY DESCRIBED IN PARAGRAPH 4 ABOVE AS FAR AS HONG KONG

CONCERNED. IN PARTICULAR, HMG ACCEPT THAT, SO FAR AS

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THE NEGOTIATIONS WITH CANADA ARE CONCERNED, THERE IS A NEED TO REACH AGREEMENT WITH THE CANADIAN GOVERNMENT ON A BASIS WHICH

WOULD ENABLE TRADE TO CONTINUE AT A LEVEL ACCEPTABLE TO THE. GOVERNMENT OF HONG KONG. THEY ARE THEREFORE AGREED THAT, IF NO OTHER ARRANGEMENT CAN BE MADE WITH THE CANADIAN AUTHORITIES WHICH WOULD SAFEGUARD HONG KONG'S POSITION IN THE CANADIAN MARKET, IT WILL BE NECESSARY TO AGREE TO A CONTINUATION OF THE EXISTING RESTRAINTS, INCLUDING IF NECESSARY THEIR EXTENSION TO COVER POLYESTER/POLYNOSIC SHIRTS, FOR A FURTHER PERIOD AT A LEVEL WHICH THE HONG KONG AUTHORITIES ARE SATISFIED IS THE BEST WHICH CAN BE OBTAINED IN THE CIRCUMSTANCES.

7.

HMG HAVE ALSO AGREED WITH THE GOVERNMENT OF HONG KONG TO EXAMINE WHETHER THE PROCEDURES FOR SUCH CONSULTATION AS IS REQUIRED BETWEEN THE TWO GOVERNMENTS IN CONNECTION WITH NEGOTIATIONS

ON NON-COTTON TEXTILES CAN BE IMPROVED.

ENDS

2.

JORDAN WILL TELEPHONE TO COMPERTHWAITE ABOUT ITS HANDLING.

STEWART

INTERNATIONAL TRADE DISTRIBUTION

H.K.D.

GGGGG!

RESTRICTED