TNAG-0243-FCO40-279-Conduct-of-Hong-Kong-commercial-relations-1973 — Page 131

CYPHER/CAT A

CONFIDENTIAL

PRIORITY FOREIGN AND COMMONWEALTH OFFICE

TEL NUMBER 515

7/8

for

TO HONG KONG

(64

LUPY

DATE 4 AUGUST 1970 (HK)

CONFIDENTIAL.

NEUTRAL.

ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NO 515 OF 4 AUGUST REPEATED FOR INFORMATION TO WASHINGTON AND GENEVA.

M.I.P.T.

FOLLOWING IS TEXT OF DRAFT DESPATCH.

BEGINS.

R

j.

66

I HAVE THE HONOUR TO REFER TO THE QUESTION OF RELATIONS BETWEEN HER MAJESTY'S GOVERNMENT AND THE GOVERNMENT OF HONG KONG IN THE

MATTER OF TRADE IN TEXTILES. FOR SOME YEARS NOW IT HAS BEEN CLEAR THAT THE INTERESTS OF HONG KONG AS A MAJOR EXPORTER OF TEXTILES, BOTH COTTON AND NON-COTTON, ARE NOT NECESSARILY THE SAME AS THOSE OF THE UNITED KINGDOM WHO, ALTHOUGH HERSELF A SUBSTANTIAL EXPORTER, IS PRIMARILY A MAJOR IMPORTER AND DOMESTIC PRODUCER OF SUCH GOODS. 2. RELATIONS IN THE FIELD OF COTTON TEXTILES HAVE EVOLVED GRADUALLY OVER THE YEARS AND COTTONS AS SUCH NO LONGER PRESENT PROBLEMS, I

HAVE NOW DECIDED THAT IT WOULD BE IN THE INTERESTS OF BOTH THE UNITED

KINGDOM AND HONG KONG IF THE GOVERNMENT OF HONG KONG WERE TO EXERCISE

THE SAME DEGREE OF INDEPENDENCE OF ACTION ON NON-COTTON TEXTILES AS AT PRESENT ON COTTON TEXTILES: AND I HEREBY GIVE YOU AUTHORITY

TO ACT WITHIN THE TERMS OF THIS DESPATCH.

3. RELATIONS BETWEEN HER MAJESTY'S GOVERNMENT AND THE GOVERNMENT

OF HONG KONG IN THE FIELD OF COTTON TEXTILES ARE BASED ON THE PRO VISIONS OF THE ''HEADS OF AGREEMENT NEGOTIATED IN 1965/66 AND ON THE TERMS OF THE LONG TERM ARRANGEMENT REGARDING INTERNATIONAL TRADE IN COTTON TEXTILES (LTA). THE UNITED KINGDOM ACCEPTED THE LTA ON BEHALF OF HONG KONG AND, WITH THE APPROVAL OF HER MAJESTY'S GOVERN- MENT, THE GOVERNMENT OF HONG KONG HAVE NEGOTIATED BILATERAL AGREE- MENTS FOR RESTRAINT OF TRADE IN COTTON GOODS WITH ALL THE MAJOR IMPORTING COUNTRIES. MOREOVER, THE COUNTRIES PARTY TO THE LTA ARE.

/MEMBERS

CONFIDENTIAL