TNAG-0747-FCO40-951-Visits-of-Foreign-and-Commonwealth-officials-to-Hong-Kong-1978 — Page 19

Brief No 9

MORNING. MONDAY 9 OCTOBER

MEETING WITH DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS (MA D H JOHLAN)

Hong Kong status in GATT

1.

Earlier this year there appeared to be some confusion as to HMG's views on how Hong Kong might best be represented in GATT. At present the Hong Kong representative in Geneva is officially a member of the UK delegation but has considerable freedom of action. we, the DOT and UKMIS Geneva are content that this should remain the position. Mr Dell was briefed to make this point during his recent visit to Hong Kong but failed to do so. It would therefore be useful if you could now confirm our position and explain that there will be occasions when the Hong Kong representative needs to take a different line from ourselves. We believe this arrangement is fully understood by other dele-

There gations in Geneva, and need not cause us any embarrassment. is no need therefore to try to seek separate representation for Hong Kong in GAT, a move that would create difficulties with the Chinese. we hope the Hong Kong representative will continue his present practice of giving us advance warning of any statement he intends to make.

Textiles

2. I would think it unlikely that last year's MFA discussions will be raised. The effect so far on Hong Kong has been negligible and much of the rancour has disappeared. Although the agreement severely limits the prospects for growth in Hong Kong's textile exports to the EEC, the effect of this is diminished by the generally buoyant state of Hong Kong's exports world-wide.

Textile exports to Norway

3. The Norwegians earlier this year imposed an approximate 40% cut on Hong Kong's quota of textile goods. Spasmodic discussions have been continuing since then, but the last talks in August made no progress and Hong Kong are now considering asking for our support in taking action against Norway in the

/GATT.