NOTHING TO BE WRITTEN IN THIS MARGIN
W(B)L 51-7406
13. Mr. Jones explained why the Japanese would.
be better pleased by a separate agreement.
14. Mr. S. Stewart said that Hong Kong's self-
interested objective in desiring an extension
of the LTA was to "role in" their large cotton
quotas with MMF. This would have serious con-
sequences in the UK and he doubted whether
Ministers would agree to subscribe to such a
policy. If LTA rules were applied the importing
country would have the right to decide. On the
other hand if Article 19 procedures were applied
on a non-discriminatory basis Ministers might be
able to agree.
15. It was decided that if the Japanese were
still resisting US pressure by the time the CTC
next met there would be no need for the UK to
take a new line. If there was a general desire
to discuss non-cotton issues in the CTC the UK
would not wish to hold out against it. A sugges
tion by Mr. S. Stewart that we should get to-
gether with the Japanese on how to take the issue
a stage further internationally was not agreed.
Preferences
16. It was generally agreed not to make a more
formal approach at this stage to the EEC object-
ing to their discriminatory offer to Hong Kong,
but instead to continue informal talks with
lvsa
Tran, Di Martino and Fan Ernst.
17.
Messrs. Jones and Jordan explained that
Hong Kong would prefer the use of objective
criteria if particular countries had to be
excluded from the preference schemes. This
could be done on a basis of competitive need.
Over ten years the needs of different developing
countries would vary as their competitiveness
improved.
/ 18.
...
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