Pulzbby #lucyúm ispresenĻU,VIVUS
of Hong Kong is avoided.
AR
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.
Proposals
It is how proposed to give to Hong Kong the same
I independence of
degree of action on non-cotton textiles and possibly
on some other commodities as she has at present on
cottons!
This will have to be effected by a
Delegation of authority from H.M.G. to the
3
Government of Hong Kong, and the terms of such an delegation are [still under consideration.
Non-Cotton Textiles (Man-made fibres and Wool)
6.
Apart from the United States all major developed
countries restrict imports of some non-cotton
textiles from Japan. In the past three years
Hong Kong, Korea.and Taiwan 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
CONFIDENTIAL
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