TNAG-0279-FCO40-315-Visit-of-Secretary-of-State-for-Foreign-and-Commonwealth-Aff-1970 — Page 90

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"I firmly believe that our Government in Hong Kong must be

given the full authority to make decisions on internal

matters so that we can adopt measures which, in our opinion,

are in the overall interests of our community.'

(He was speaking with reference to the use of powers to permit

night work of women, the exercise of which he alleged was subject

"to certain restrictions imposed by Whitehall";

fact exercised after consultation with us).

the powers are in

These are, of course,

highly exaggerated and emotive utterances but they are indicative

of a strong attitude that Hong Kong knows best what is good for it

and particularly for its rather unique economy.

6.

Three factors have possibly heightened this attitude in the

last two years.

(a)

Clash of Interests in the field of International Textile

Policy

The first is the clear emergence of a clash of interests in

the field of international textile policy between Hong Kong as

a major exporter of textiles and the UK as a major importeraund

domestic producer: this has led Hong Kong to press for the

maximum possible freedom in the conduct of the Colony's

commercial relations and for the demarcation of their sphere of

responsibility in a written understanling (the drafting of which

is under discussion) To the extent that Hong Kong "trades up"

(1.c. produces goods of higher quality and value) so the Colony

will more and more become a competitor of the United Kingdom

Loth in the UK domestic market and also in overseas markets,

particularly in textiles.

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/ (b).

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