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(118281) Dd. 391599
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PRIVACY MARKING
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From
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Department
Who, although herself
a
Substantiel
ら
exporter, is primarily
collons as such
United Kingdom Relations with Hong Kong on
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 Kingdom a major importer and domestic producer of such goods.
2.
It is the general policy of both Hong Kong and the United Kingdom to support measures designed to
liberalise international trade. Difficulties have
arisen, however, over the form of the approach to particular issues. It is a fundamental part of our policy to support the principles enshrined in the General Agreement on Tariffs and Trade (GATT) and to
resist restraints on trade which we regard as unjustifiable. Hong Kong, on the other hand, being much more dependant on exports than the United Kingdom
and with much less bargaining power in negotiations
with other countries, understandably tends to take a
less firm view. In general, Hong Kong would prefer to negotiate under duress and to make the best deal possible rather than run the risk of having unilateral restrictions imposed on her exports by her trading partners. This attitude can be explained in part by
the fact that Hong Kong attaches great importance to her free port status and is reluctant to take to herself the right to retaliate against the goods of
a country which is discriminating against the Colony.
3. Our relations with Hong Kong in the field of
cotton textiles have evolved gradually over the years and now present no problems. With the development
of man-made fibres, however, new difficulties have come up, particularly in the field of Hong Kong's external commercial relations. These have arisen not
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