TNAG-1301-FCO40-1657-Visits-by-Richard-Luce--Minister-of-State-for-Foreign-and-Co-1984 — Page 131

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bilateral textiles agraeement with the EC, arguing that restrictions imposed on imports of Hong Kong textiles, the Territory's major export commodity, ultimately benefits developed rather than other developing suppliers, contrary to the principles of the Multi-Fibre Arrangement (MFA). Negotiations to extend the MFA began in Spring 1982, and on 30 November 1982 an agreement setting yearly

quantitative restraints on Hong Kong exports to the EC was reached.

This will last until 1986.

b) Defence

5.3 The garrison in Hong Kong consists of five infantry battalions (four Gurkha and one British), a Gurkha engineering squadron, five naval patrol craft and two squadrons of helicopters. There is

provision for ad hoc short term reinforcement. A new Defence Costs

Agreement was signed in October 1980 and came into effect in April

1981. It will run for seven years initially, and will be renewable

for further periods of five years on the same terms unless varied.

Hong Kong's contribution to costs under the Agreement remain at 75%,

but a new, comprehensive system of accounting costs was introduced

which, in effect, increased Hong Kong's share by more than 50%.

Part of this reflects the enlargement of the British garrison in

Hong Kong by one infantry battalion.

c)

Nationality Act

5.4 The British Nationality Act, which came into effect on 1

January, provides for a separate category of "British Dependent Territories' Citizenship" (BDTC). Hong Kong, which was unhappy about the abandonment of the unitary Citizenship or the United Kingdom and Colonies (CUKC) would have preferred a title which

emphasised more strongly the Territory's links with the UK. Amendments were, however, introduced in order to allay some of Hong Kong's fears over the Act, by permitting registration for BDTCs after five years' residence in the UK, and allowing discretionary

registration by the Home Secretary of Dependent Territories' Crown

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