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Stana' Visit to Hong Kong
This Submission considero two related questionsi
ram
(1) What line we should encourar Hong Kong
take/ when Mr. Steng makes his ́ visit.
(11) Whether a U.K. representative should be
present.
Mr. Stans and his party are well aware that as a dépendancy of the United Kingdom, Hong Kong cannot act as an independent power in the G.A.T.T. and that there is really little point in getting Hong Kong officials to say that they would not mind if a G.A.T.T. conference weng 'called with a view to extending the L.T‚Â, to cover non" cotton textiles.
3.
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On the other hand, U.S. officials are aware that we have given Hong Kong a free hand in negotiations on cotto textiles under the L,T.A. with some cupport from our Embassy in Washington. They probably realise that it wou not be possible for Hong Kong to enter into voluntary restraint arrangements outside the cotton textile sector without some sort of approval from the United Kingdon but they may suspect that in the last resort Hong Kong wishes in this respect will normally be paramount. They are cer- tain to tell the Hong Kong authorities that they are aware that voluntary restraint arrangements have been entered into covering certain non-cotton textile items with Canada Germany, Norway and Sweden. They may argue from this that no new principle is involved in extending restraints to Hong Kong exports to the U.S.A. They may even threaten that unless Hong Kong exercises such restraints on request Hong Kong will be the loser in the end.(because much more onerous restrictions would be imposed upon her sooner or later.)
4. Although we have acquiesced in the voluntary restrain arrangements mentioned above we have done so reluctantly a
N have done our best to ensure that such arrangements were
only made when the statistical case appeared unusually strong.
IN
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