TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 15

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HONG KONG STUDY

ANNEX

TRADE

Present Situation

SECRET

Hong Kong is a major commercial centre within Asia. Free trade

policy.

Sophisticated infrastructure.

dependent on imported resources.

Port. Almost entirely

Market economy.

Government's role not economic planning but

provision of suitably stable framework with minimum interference.

While HMG is responsible for Hong Kong's external relations Hong Kong

is allowed considerable latitude in external trade policy matters,

and indeed informally leads the group of major textile and clothing

exporting countries opposing the EC's restrictive imports policy.

PRC a command

economy and state trader.

GATT and MFA

GATT both an international agreement setting out the ground rules

for the open trading system and an international organisation which

provides a forum for trade negotiations and for dispute settlement.

Each Contracting Party to GATT has rights of access to other Contracting

Parties' markets for its exports, and obligations in respect of access

to its market for their exports all representing the fruits of over

30 years multilateral negotiation on trade liberalisation.

-

SECRET

./MFA

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