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SPECIFIC OUTLINE OF HIS PROPOSED ARTICLE 4 AGREEMENT. HE MADE IT CLEAR THAT WHILST, AS FAR AS THE COMMUNITY WAS CONCERNED, THE FRAMEWORK MUST NECESSARILY BE RIGID, IMPORTANT ELEMENTS IN IT, SUCH AS COVERAGE AND GROWTH, WOULD BE NEGOTIABLE. BUT, IF THE NEGOTIATIONS TOOK PLACE AND APPEARED TO THE GOVERNMENT OF HONG KONG TO BE REACHING A STAGE WHERE IT WOULD NOT BE IN THE INTERESTS OF HONG KONG TO CONCLUDE AN ARTICLE 4 AGREEMENT,
THE GOVERNMENT OF HONG KONG WOULD BE PERFECTLY ENTITLED, UNDER THE TERMS OF THE COTTON TEXTILES ARRANGEMENT, TO DECLINE TO ENTER INTO AN ARTICLE 4 AGREEMENT. THE COMMUNITY WOULD THEN HAVE TO CONSIDER WHAT OTHER COURSE TO ADOPT.
5. THE POSITION IS THEREFORE THAT ERNST WILL COMMUNICATE THE PROMISED MATERIAL TO DODGE PERHAPS LATER THIS WEEK AND IN ANY CASE NOT LATER THAN 20 JULY. IF THE HONG KONG GOVERNMENT AGREE TO OPEN ARTICLE 4 NEGOTIATIONS ON THE BASIS OF THIS MATERIAL, ERNST THINKS THAT IT MIGHT BE POSSIBLE FOR AT LEAST A FIRST ROUND TO BE HELD IN BRUSSELS ON 29 AND 30 JULY. OTHERWISE THEY WOULD HAVE TO BE HELD OVER UNTIL AT LEAST THE MIDDLE OF SEPTEMBER AND HE SAW DISADVANTAGE IN THIS.
6. DODCE, WHO HAS SEEN AND AGREED THIS TELEGRAM, WILL BE MAKING HIS OWN RECOMMENDATIONS TO THE GOVERNMENT OF HONG KONG.
F C O PSE PASS PRIORITY TO UKMIS GENEVA (FOR JONES) SAVING TC BONN THE HAGUE PARIS ROME
SIR J. MARJORIBANKS
[REPEARED AS REQUESTED]
INTERNATIONAL TRADE DISTRIBUTION:
COMMODITIES D.
ADDITIONAL DISTRIBUTION:
HONG KONG INTERINTICHAL TRADE.
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