TNAG-1154-FCO40-1434-Visits-by-Members-of-Parliament-(MPs)-to-Hong-Kong-1982 — Page 144

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13. If question of future comes up in margins of MP's discussions

grateful if they could comment as follows:

a) China and UK focussing on the problem;

b) all concerned keen to see prosperity and stability

maintained (independence of Hong Kong dollar important

factor);

c) wrong to expect sudden or early developments;

d) wrong to draw parallels with Falklands;

e) HMG's commitment to Hong Kong interests of its people

as strong as ever;

f) no cause for any lack of confidence in Hong Kong

UK/Hong Kong trade relations

14.

Probably Britain's biggest export market in Asia in 1981

(overtaking Japan). UK held 4.5% of Hong Kong market. Trade

balance in Hong Kong's favour, but considerable invisibles and

investment. Our exports have shown marked improvement in recent

years, thanks largely to major projects like MTR and Castle Peak.

15. Half our imports from Hong Kong are clothing and textiles.

Hong Kong aware of its heavy dependence on these items.

Sensitive areas in Hong Kong/UK relations

16.

a) Multi-Fibre Arrangement (MFA) : Strong feelings in Hong

Kong against what is seen as EC's increasingly protectionist

Negotiations for renewal of EC/Hong Kong

attitude.

bilateral agreement on textiles began on 1 June. Likely

to be tough and acrimonious;

b) Nationality Act: Hong Kong unhappy that new law did not

sufficiently express their Britishness. HMG understands

Hong Kong's feelings. No intention to distance UK from

it dependencies;

/c)