TNAG-0138-FCO40-174-Conduct-of-Hong-Kong-commercial-relations-1969 — Page 139

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rests on the size, pattern and growing complexity of the Colony's trade. It is arguable whether in Whitehall there is anyone with sufficient knowledge or understanding of the Colony's commerce to make competent decisions relating to it. In the broad sweep

of international trade affairs Whitehall's

knowledge is obviously more extensive than Hong Kong's with its much wider contacts and sources of information. There is clearly

therefore a field for the marriage of these separate skills in handling Hong Kong's

commercial interests.

such

17. In the actual conduct of commercial

negotiations, an intimate knowledge of Hong Kong industry and trade is essential: negotiations must be in the hands of Hong Kong

representatives. Hong Kong has argued that the presence of UK representatives at the negotiating table has tended to diminish the stature and authority of its representatives.

There is no doubt that on some occasions this

has been the case;

in the reasons this

regotiation the opposite side has been

quick to notice differences of views between

UK and Hong Kong representatives and exploit

them to its advantage. But it is also arguable that on occasions the support of UK representatives has helped Hong Kong's cause in that it has brought home to the other side

of the table that UK interests and relations

are involved and must be considered.

Nevertheless Hong Kong has without UK

participation fought its own battles in

negotiations on cotton textiles under the LTA.

There is probably a good case for making UK participation at the negotiating table an exceptional arrangement and then only as "observers", the general "brief" for the negotiations having been agreed in advance (see paragraph 19 below).

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18. The above relates to the conduct of

actual negotiations. It does not apply to the conduct of general talks with third countries on broad policy matters. In such talks the extent and nature of UK participation must depend very much on the scope and importance of the policy issues involved, and such

/ factors

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