TNAG-0341-FCO40-377-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 10

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9 September 1970. But one point may not have been clear from that account: even in the Cotton Textiles Committee the Hong Kong representation sits with the UK Delegation and has no separate flag. However, it is of course completely accepted that Hong Kong speaks for herself in the CTC and may on occasion differ from the UK. It is also worth remembering that/ember- ship of the Committee does not depend on one's status in the GATT. The LTA was set up under a waiver from the GATT and the Committee includes some non-contracting parties. It would presumably be possible for Hong Kong to have separate represen- tation in the CTC without being "deemed to be a contracting party". However, this will not necessarily be the case in whatever body succeeds the CTC in October 1973, when we should need to establish an unchallenged position for Hong Kong.

This would be easier if she were granted independence in the GATT, no doubt, but the special position of Hong Kong in textile matters which has been recognised in the LTA will provide a useful prece- dent, especially if we have by then achieved greater Hong Kong independence in the CTC. Once again, I do not believe/there will freebly be will be difficulty in persuading contracting parties other than the EEC countries of the need for Hong Kong to be separately represented. It is fully understood that no international textiles forum could operate sensibly without her and I think there will be no disposition to make political points about it.

willwate There might be mechanical problems in arranging separate repre- sentation; it may for instance be held that no change in member- ship of the Cotton Textiles Committee can take place before its next meeting in a year's time, but one may hope that Mr Long would accept a simple notification that henceforth Hong would send a separate delegation.

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7. There is one final point on which, although it is not really for us in this Mission to comment, I hope I may be permitted to express an opinion. This concerns your paragraph 3(c). Trying to weigh up from here the GATT, UK/EEC and UK/Hong Kong aspects of the relationships involved, it seems to me preferable not to approach the EEC representatives until our own line has been fully agreed with the Hong Kong representatives in September. Thereafter the subject should, I suggest, be taken up in Brussels as a matter of urgency, since it would surely be unwise and perhaps dangerous to wait for the situation in 1973 to force a decision.

8. As you appreciate, these are preliminary views, and it would be helpful to have authority to discuss the question in confidence with the GATT Secretariat if necessary before and certainly after the September meeting with Hong Kong.

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