TNAG-0243-FCO40-279-Conduct-of-Hong-Kong-commercial-relations-1973 — Page 85

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Mr. Hale

Commodities Department

Reference.....

(22)

Hong Kong's position in the GATT on

Textiles.

Thank you for the draft telegram which Dunnett proposes should be sent to UKMIS, Geneva.

2.

Under Article XXVI:5(c) of the GATT it would be necessary for Hong Kong to be given complete autonomy in regard to the conduct of external commercial relations and this, of course, would not be acceptable to the Chinese Peoples' Government. In view of this we would like to omit the words "We would be inclined to think that" from the second sentence of the first paragraph.

3. We suggest that paragraph 2 of the telegram should read as follows:-

"The suggestion in your para.2 that we might seek separate representation for Hong Kong in the Cotton Textiles Committee and proposed new Working Party on textiles is open to the same objection although perhaps to a lesser degree. Moreover we are inclined to expect opposition to it, bearing in mind that Hong Kong is not a separate signatory of the L.T.A. (The suggestion in your telegram 451 para. 2 that Hong Kong participates in its own right in the L.T.A. seems questionable. Dunnett's letter to Buxton of 10 July refers).'

4. I have already sent the draft despatch to the Governor over to Dunnett and he will doubtless add a balancing phrase to the end of paragraph 6.

5. Far Eastern Department agree with these amendments.

(G.F. Kinnear) Hong Kong Department

20 August,1970

Copy to: Far Eastern Department

Trade Policy Department

CONFIDENTIAL