TNAG-0243-FCO40-279-Conduct-of-Hong-Kong-commercial-relations-1973 — Page 159

Registry

No.

URITY CLASSIFICATION

DRAFT

DESPATCH

To:-

Type 1 +

From

The Maritx

Secretxx

Confidential.

KEMPEX

Unchassifestx

PRIVACY MARKING

In Confidence

His Excellency

Sir David Trench, GOMG., MC.,

Government House,

Victoria,

TONG XONG.

Telephone No, & Ext.

Department

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 the same as those of the United Kingdon 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.

The

Relations between Her Majesty's Government and the Government of Hong Kong in the field of cotton textiles are based on the provisions of the "Heads of Agreement" negotiated in 1962 and on the terms of the Long Term Arrangement regarding` international trade in cotton textiles (LTA). United Kingdom accepted the LTA on behalf of Hong Kong and, with the approval of Her Majesty's Government, the Government of Hong Kong have negotiated bilateral agreements for restraint of trade in cotton goods with all the major importing countries. Moreover, the countries party to the LTA are members of the Cotton Textiles Committee of the General Agreement on Tariffs and Trade (GATT) and Hong Kong's representatives attend meetings of this Committee as members of the United

/ Kingdom

(118281) Dd. 391599 1,500M 2/69 Пw.

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