TNAG-0138-FCO40-174-Conduct-of-Hong-Kong-commercial-relations-1969 — Page 206

MANAGEMANT OF HONG KUNG'S EXTERNAL COMMERCIAL RELATIONS

1.

Problem

To decide the extent and method of delegation to the Hong Kong Government of responsibility for management of the Colony's external commercial rolations.

2. Solution

3.

To utilise existing arrangements for consult- ation between II.M. Governments in the U.K. and in Hong Kong to ensure coverage (as necessary) of all important aspects of Hong Kong's external" commercial relations; in which consultation the extent of British interest would be assessed and management of matters in which this was a minor factor would be delegated to Hong Kong

Argument

R.M.G. in the U.E. is constitutionally responsible for all aspects of Hong Kong's external affairs and this ultimate responsibility cannot be relinquished. However, there already exists a practice whereby some matters of concern primarily to Hong Kong trading interests are managed by the Hong Kong Govornsent, under broad policy directives laid down by H.M.G. in the U.K. Examples of this are:

(a) Negotiations under the Cotton Textiles

Arrangement (which H.M.. has specific- ally accepted on behalf of Hong Kong as well as the United Kingdom);

(b) arrangements with Germany on woollen

knitwear and with Canada on certain garments of man-made fibres;

(a) consultations with Austria and South Africa on the effect on Hong Kong of their anti-dumping regulations;

Į

(d) tariff consultations under article

XXVIII of the G.A.T.T. (e.g. with the United States).

There are strong arguments on practical grounds for continuing and expanding this practice.

2.

These argumento centre on ficat the size, pattern and growing complexity of Hong Kong trade which make it extremely difficult for anyone not constantly concerned with all aspects to manage any of them. It is believed that no official of H.M.G. in the U.K. has either the

2