TNAG-0138-FCO40-174-Conduct-of-Hong-Kong-commercial-relations-1969 — Page 173

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SUGGESTED STATEMENT TO THE HONG KONG TEXTILE ADVISORY BOARD

The constitutional position is that HMG is responsible

for the conduct of Hong Kong's external relations (including

commercial relations).

2.

Nevertheless, HMG have recognised that in matters not

affecting considerations of British international commercial

policy the Hong Kong Government should determine the course

of, and where practicable be responsible for the conduct of,

Hong Kong's external commercial relations.

3. Where considerations of British international commercial

policy are involved the Hong Kong Government may, as

appropriate and in full consultation and association with HMG,

exercise a similar responsibility, acting within the framework

of policies agreed with HMG and in conformity with treaty.

obligations.

*

non-cotton ]

as/textiles

4. So far as

iles are concerned, HMG recognise that, with

their agreement, the Goverment of Hong Kong have been following

(such as at one

a policy, when a situation has arisen in which Article XIX

*

nin.

of the GATT might otherwise have been invoked, of agreeing to

expat Zvoluntary restraint on non-cotton textiles where it seemed in the

best interests of Hong Kong to do so.

5. In the light of recent international developments in

the sphere of textiles, HMG are at present urgently reviewing

their policy as it affects both the U.K. and Hong Kong, and

in doing so they will take full account of the representations

recently made to them by the Government of Hong Kong.

will continue to keep in touch with the Hong Kong Government so

far as the interests of that Government are concerned.

They

*6.. They do not wish to propose any change in the meantime

in the policy described in paragraph 4 above as far as Hong

Kong is concerned.

In particular, HMG accept that, so far

RESTRICTED

/as