TNAG-0329-FCO40-365-Briefs-for-UK-officials--visits-to-Hong-Kong-1972 — Page 13

CONFIDENTIAL

sing to submit to the Council on 1 May an outlined

proposal for comprehensive restraint agreements on

non-cotton textiles with Hong Kong, and also with Japan,

Korea and Taiwan, presumably on the lines of the agree-

ments whigh the USA forced on these countries last

autumn. The DTI memorandum is intended to pre-empt this

proposal.

GATT Aspects

4. An important problem for Hong Kong will be their

GATT relationship with the Community when we become

members. Because of their constitutional position, it is difficult to see how they could have a GATT relation-

ship with the United Kingdom. Nevertheless, they will need to maintain such a relationship with the enlarged Community, since they will wish to ensure that the

Community abide by the trading rules which the GATT

enshrines. This is a problem which needs early conside- ration and which Hong Kong wish to discuss with—–—–

officials in Writabii.

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CONFIDENTIAL