TNAG-0138-FCO40-174-Conduct-of-Hong-Kong-commercial-relations-1969 — Page 194

CONFIDENTIAL

For . Carter's Use

MALIGALNIH OF HONG KONG'

COMMERCIAL LANTIONS

نا

Informal lote

KN ERWAL

H. .G, is responsible for Hong Kong's external commercial relations as part of her overall responsibility for the Colony's affairs. However, because of the cize, pattern and growing couple ity of Hong Kong's trade, it has been accepted as a matter of practical convenience that the management of cervin areas of the Colony's bilateral commercial relations should be conducted by the Mong Hong Govern.ent. Axamples of this are:

(a) negotiations ulier the Cotton Textiles

Arragonent (which, I...7. has

(3)

specifically accepted on behalf of Hong Kong as well as the United niajdou.);

arrangements with Germany on woollen knitwear and with Canada on certuin Garments of man-tado fibres;

(c)

conrultutishs with mustria and South

africa on the effect on Hong Kong of their anti-dumping regulations;

(a)

tariff consult .tions under Article XXVIII of the G.... 2. 2. (e.r. with the United status).

2.

It has been accepted that all these consult- ations of negotiations are either conducted within the confines of Internation:1 instruments accepted by H.H.G. (e.g. the Cotton Textiles Prag enent) or that the policy issues involved are fully discussed and agreed with H.1.,G, beforehand and that the latter concura with the broad line to be taken by Hong Kong in any particular in bance. In each case (other than in certain cotton textile matters) the concurrence of H.1.&. has been required before Hong Kong en formally conclude any binding agreement.

3.

In considering the policy issues involved H.li.G. while keeping fully in touch with the Hong Kong Government through the Commonwealth Office, makes its decisions through tre normal interdepartacntal machinery (i,e. H.l.G. as a whole, and not one department acting

In this on its own, exercises the power of lecision). process, the interests of Hong Kong are represented by the Commonroslth Office.

4.

It has also tended to be accepted hitherto that, in considering questions of Hong Kong's external commercial relation, the interests of Hong Kong should be paramount and that the vious of the Hong Kong Government in interpreting those interests should normally be accepted. Only hoa very strong reasons of U.A. policy op wider interactional considerations Pum counter to tão Hon! Aon: View thould this De overmiled.

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