TNAG-0243-FCO40-279-Conduct-of-Hong-Kong-commercial-relations-1973 — Page 98

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delegation.

-4-

They have an opportunity to present Hong Kong's

views independently but in practice the expression of conflicting

views by United Kingdom representatives and representatives of

Hong Kong is avoided. These arrangements reflect the fact that

Hong Kong, being a dependent territory, is not a separate member

of the GATT, and is represented in the GATT by the UK delegation.

Hong Kong could become an independent member of the GATT only if

she were declared to have full autonomy in the conduct of her

external commercial relations.

Non-Cotton Textiles (Man-made fibres and Wool)

8.

Apart from the United States all major developed countries

restrict imports of some non-cotton textiles from Japan. In the

past three years Korea, Taiwan and Hong Kong have all been using

Japanese yarn and cloth for knitting and making-up into garments

and pressure has built up to restrict this trade. The USA at

one time suggested that the LTA should be extended to cover all

textiles and under threat of arbitrary action by the importing

countries concerned Hong Kong has given voluntary undertakings

outside the GATT to restrain exports of several types of non-

cotton garments to Canada, Sweden and Norway. These arrangements

were not altogether disadvantageous to Hong Kong, because they

raised prices and guaranteed that she would continue to enjoy

a large share of the markets; but they have caused HMG

considerable embarrassment on the principal ground that they

constitute undesirable precedents for the extension of LTA-

type restrictions not only throughout the whole field of textiles

but to other commodities. Extension of LTA type restrictions

would be contrary to British trading interests, and the Unite

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