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Reference

Ave Stews M. Conter

45

Hong Kong/Jorve, jan Textile Negotiations

-21tu

inteiber, 10

HK Depr

Mo 30% x

Fr. Souza of the Hong Kong will send us a copy of his letailed record of these tulks; and you will already he aware from the telegrins from Oslɔ of the manner in which the discussions proceeded. I have therefore confined myself to se ting down one or two points of interest which may not emerge clearly. elbewhere:

(i) the atmosphere of the talks was cordial throughout. The Norwegian officials were obviously inexperienced in negotiations of this sort, and did

Their leader not bar in particularly hard in the final negotiating sessions. Ir. Jarving of the Ministry of Foreign affairs took up his present rost only a few months' ago and had, I believe, little previous comercial experience. Mr. Flster, a Counsellor in the Ministry of Commerce, did not play a very active part in the talks.During the statistical sessions, however, the directors of two trade associations Fr. Ronning of the Nationa! Clothing Lanufacturers' Association and .r. Fleisher of the Norwegian Textile ranufacturers' Association had a great deal to say for themselves, and it was apparent that they exercised considerable influe ce over Ir. Jerving. Fortunately we were successful in

There was insisting that they should be excluded from the actual negotiations;

a noticeable relaxation in the Norwegiin officials' attitude once they had gone.

(11) I think the participation of a delegate undoubtedly made an

impact.

HKK6/294/1

(a) because it was brought home to the Norvegians that Hong Kong was

not without friends;

wis deturfined to see that Hong Kong was

not vietiniaed," and trut the new agreement did not set an even more embarrassing precelent than the last

(b) because Norwegian officials, in excusing themselves to their industry

for the (to then) disappointing settlement, were in a position if they wisned to point tɔ ble pressure that had been brought to bear by . .i.

(c)

Me

For

because it helped to keep te Hong Kong delegation in check. instance, on Tuesday Fr. do was prepared to accede to a Norwegian suggestion that, the statist.cul analysis being complete, we should proceed is ellately to ne tinte. I intervened to say that since our authorities bad as yet had no opportunity to comment on the recently-produced statistics, we could not negotiate until we had received the instructions expected the fɔì owing morning. accordingly broke off the talks until Wednesday norning, although Er. o súosequently remarked tɔ „e that he had full instructions

I then and saw no real necessity for awaiting London's reactions. pressed him for.details of his instructions (which he had apparently agreed by telephone with Fr. Jordan) and was able to cable details of them to London on Tuesday afternoon. It was clear that the long Kong side had had no intention of letting us know what they proposed to do.

(iii) although ileally we should have liked the Norwegians to agree to the removal of all restrictions on Hong Kong's exports of non-cotton textiles to orway, there is at least some grois for satisfaction in the fact that the number of restraints remains at three.

(iv) as authorised by telegram 642 from London to Oslo, I put it to the Norwegians that their problems in the knitwear field were attributable to a very considerable extent to increased imports from ErTA countries. Norwegian officials argued in reply that their industry seemed willing to tolerate the increase in imports from other EPA countries, as an inevitable consequence of the free trade area agreement; but the unfettered growth of very low-priced knitwear imports from Hong Kong had made a deer "psychological impact" on both manament and workers in their textile industry. (In other words, the liorwegians tacitl admitted that restraints pusiminte-on Hong Kong were no more than a political sor.)

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