TNAG-0341-FCO40-377-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 52

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CONFLUENTIAL

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MY SUGGESTION IS BASED ON THE ASSUMPTION THAT TEXTILES CONTINUE

TO BE CONSIDERED A SPECIAL CASE, IF, HOWEVER, A MORE GENERAL

DEROGATION OF AUTHORITY WERE TO BE CONSIDERED IN THE FIELD OF

EXTERNAL COMMERCIAL RELATIONS, AS SUGGESTED IN PARA. 2 OF HONG KONG TELEGRAM NO. 525, AND THIS WERE TO EXTEND TO MATTERS, OTHER THAN TEXTILES, ARISING IN THE GATT, THE LOGIC OF THE SITUATION

WOULD POINT TO SEPARATE HONG KONG REPRESENTATION IN THE GATT

THROUGH ITS BEING QUOTE DEEMED UNQUOTE A CONTRACTING PARTY UNDER ARTICLE XXVI:5(C). THE WORDING OF THIS PROVISION AND THE HISTORY OF ITS DRAFTING SEEM TO SHOW THAT IT WAS INTENDED IN 1947 TO APPLY TO

DEPENDENT TERRITORIES: BUT SO FAR AS I KNOW IT HAS NEVER DONE SO.

AND IT MAY WELL BE THAT IN THE INTERNATIONAL CLIMATE OF TODAY SUCH

A SOLUTION WOULD RAISE DIFFICULTIES WITH, E.G. DEVELOPING COUNTRIES. BUT THERE IS NO CERTAINTY THAT THIS WOULD BE SO GIVEN THAT THE GATT, IN CONTRAST TO UNCTAD, IS GENERALLY CONSIDERED A TECHNICAL RATHER THAN A POLITICAL BODY..

4. IN CONSIDERING ALL THESE POSSIBILITIES, IT HAS TO BE REMEMBERED THAT A HONG KONG GOVERNMENT VIEW, EXPRESSED AS SUCH IN THE GATT, WOULD CARRY LESS WEIGHT IF IT WERE KNOWN NOT TO REPRESENT U.K.

POLICY. IT WOULD THEREFORE BE ALL THE MORE IMPORTANT TO TRY TO

ENSURE THAT CONFLICTS OF VIEW WERE REDUCED TO A MINIMUM BY PRIOR

COORDINATION OF POLICIES IN LONDON OR GENEVA.

5. MY COMMENTS DO NOT, OF COURSE, AFFECT THE EXTENT OF ANY DEROGATION THAT MAY BE GIVEN TO HONG KONG TO CONDUCT ITS COMMERCIAL

RELATIONS ON A BILATERAL BASIS.

FCO PASS GOVERNOR HONG KONG AND WASHINGTON.

SIR E MELVILLE

[REPEATED AS REQUESTED]

INTERNATIONAL TRADE DISTRIBUTION

HONG KONG DEPT

COMMODITIES DEPT

TRADE POLICY DEFT

EUROPEAN INTEGRATION DEFT

AMERICAN DEPT

་ ་

CONFIDENTIAL