TNAG-0280-FCO40-316-Visit-of-Parliamentary-under-Secretary-of-Foreign-and-Common-1970 — Page 48

CONFIDENTIAL

NOTE NO.6

Visit of Parliamentary Under-Secretary,

Mr. Royle, to Hong Kong, October, 1970

Delegation of authority to Hong Kong

in matters of overseas trade

The present position is as follows: (a) Both the Board of Trade and the Ministry of Technology have agreed, rather grudgingly, to the

dolegation of authority to Hong Kong on textiles. (b)

the Governor has asked that the delegation be

extended to cover other commodities as well. His reason is that "it would be unfortunate if the implication arose that Hong Kong remains subject to close direction in all fields except toxtiles". The Hong Kong Government have of course for many years had direct dealings with other

countries on such matters as purchases of rice from Thailand,

customs problems, certificates of origin of goods exported. (c) the Board of Trade are dragging their feet over the

extension of the delegation to other commodities. (a) Sir E. Melville, who is in charge of the UK Mission

at Geneva, has urged that we should consider giving Hong Kong separate representation in the Cotton Textiles Committee of GATT and also in the new Working Party on Tuxtiles, if it is sot up. He argues that it will be impossible for the UK delegation to speak in GATT on non-

cotton textiles with two voices. He also argues that separate representation for Hong Kong in the limited field of textiles would provide a tost bed for assessing whether wider freedom could be given to Hong Kong in the GATT if and

when we join the DC,

(૫) We have recently pressed the Boardof Trade (and Ministry of Technology) to look sympathetically at Sir E. Molville's proposals. (A copy of our letter is attached.)

Hong Kong Department

2 October, 1970

CONFIDENTIAL