CONFIDENTAL
resentment in Hong Kong on the grounds that local opinion had apparently been over-ruled by domestic political considerations in the United
Kingdom.
The Hong Kong/EEC Textiles Agreement
17. The textile and clothing industries account for nearly 50% of Hong Kong's exports and they can, therefore, become sensitive issues in the Colony. The EDC Commission and the Hong Kong Government have recently initialled an agreement on textiles restraining imports from the Colony into the Community. Difficulties with this agreement
have already arisen largely because the new quota arrangements do not account for Hong Kong textile exports already in the pipeline. The
Hong Kong Government and the EEC have attempted to reach agreement on a transition arrangement, but these consultations were concluded without an agreed solution. The disturbing feature of this breakdown is that the Hong Kong Delegation have reported to their Government that,
according to Commission sources, they might have achieved success over the transition arrangements but for the attitude of the United Kingdom.
Corruption
18. For many years there have been allegations of corruption in the Hong Kong Police and public services. The public outcry after the escape of Chief Superintendent Godber to this country led to the setting up of any Independent Commission Against Corruption at the end of 1973. The Commission's functions are to investigate complaints of corruption, to take steps for its revention and to enlist community support for its elimination. This Commission's progress has been carefully monitored in this country by critics of the Hong Kong Government and there has been some pressure for HMG to appoint a Royal Commission which could look at the whole question of corruption
in a new light.
HONG KONG/CHINESE RELATIONS
19. In Chinese eyes the Treaties creating Hong Kong were among the "unequal treaties" forced on China during a period of internal weakness, and the Chinese regard the whole of Hong Kong as part of Chinese
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