TNAG-1023-FCO40-1273-Visits-by-officials-from-Hong-Kong-to-the-UK-1981 — Page 17

CONFIDENTIAL

ESSENTIAL FACTS

NATIONALITY BILL

1. The House of Lords voted in July for an amendment to give

Gibraltarians, by virtue of their EC connection, the right to become

British Citizens. HMG opposed this amendment, and will attempt to

reverse it when the Bill returns to the Commons on 26 October. The

amendment has revived interest in Hong Kong in obtaining a compensatory

concession, a change in nomenclature that would underline the individual's

British connection.

2. The LPS is familiar with the background and latest developments.

MULTI-FIBRE ARRANGEMENT

3. Multi-Fibre Arrangement (MFA) provides framework for regulating

international trade in textiles. It is due for renewal at the end of

1981. Strong pressure by developed countries for some tightening

of restraints on their imports under MFA.

Hong

4. Hong Kong is a dominant supplier of low-cost textiles. Bilateral

agreement under the MFA between EC and Hong Kong expires at end of 1982.

5. In 1978, EC cut back Hong Kong's quotas to below 1977 level.

Kong hostile to any suggestion of repetition of these cutbacks.

Governor and senior Hong Kong officials have discussed with UK Ministers

Discussions with partners on EC mandate are now in

and officials.

progress.

6.

(Not for disclosure)

Ministers have endorsed DOT view that, while

trying to keep Hong Kong down to very low or even nil growth rates on

present quotas, UK should resist pressure within EC to impose further

cutbacks on the Territory. Present indications are that this would in

the last resort be acceptable to Hong Kong.

CONFIDENTIAL

/HONGKONG