CONFIDENTIAL
allow an execution to take place in a British Dependent
Territory). The Governor therefore changed his original
decision, and since then has invariably commuted every
capital sentence. However, there remains a strong feeling
in Hong Kong that capital punishment should be used as a
deterrent to violent crime.
HONG KONG TEXTILE EXPORTS TO THE EEC
At the end of 1977, the EEC negotiated new bilateral agree-
ments with all the Community's major suppliers of textile
products, in the context of the GATT Multi Fibre Arrangement.
Hong Kong felt they had got a raw deal. They were obliged
to accept quotas well below what they wanted, and there were
accusations unjustified in our view - that the UK had not
A
done enough to defend Hong Kong's interests in discussions
within the Community. As things have turned out, the agree-
ment was by no means a bad one for Hong Kong. It preserved
the territory's position as a major supplier to Europe and
offered Hong Kong exporters opportunities for expansion in
the less sensitive export categories. Hong Kong has also
been able to increase the value of its exports within the
quantitive restrictions by upgrading the quality of its
products. However, there is still some resentment that
while Hong Kong made sacrifices to allow developing countries
greater access to the European market, the gaps have in fact -
been filled by other developed suppliers.
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