CYPHER/CAT A
CONFIDENTIAL
PRIORITY UKDEL EEC BRUSSELS
TELEGRAM NO. 295
CONFIDENTIAL
[NEUTRAL]
51
TO FOREIGN AND COMMONWEALTH OFFICE
#2 JULY 1978
TOP COPT
HKK 6/6
60
ADDRESSED TO FOREIGN AND COMMONWEALTH OFFICE TELEGRAM NO. 295
CF 2 JULY 1978 REPEATED FOR INFORMATION ROUTINE TO BONN THE HAGUE
PARIS ROME UKKIS GENEVA HONG KONG AND SAVING TO BRUSSELS (FOR DODGE)
COTTON TEXTILES: HONG KONG/EEC,
56 HONG KONG TEL. NO. 421 HAS NOW BEEN REPEATED TO ME.
2. WE HAVE MADE SOME LOW LEVEL INQUIRIES WITH THE COMMISSION ABCUT
THEIR ATTITUDE TOWARDS THE SUPPLY OF BASIC INFORMATION. THE
OFFICIALS TO WHOM WE SPOKE SAID THAT, WHEREAS THE COMMISSION
WOULD BE PREPARED TO PROVIDE INFORMATION ON COMMUNITY IMPORTS
THEY WERE NOT WILLING TO PROVIDE THE INFORMATION ASKED FOR ON
COMMUNITY PRODUCTION AND CONSUMPTION LEVELS. THEY ALREADY PROVIDED
CERTAIN INFORMATION ON THESE TWO POINTS TO THE GATT, WHERE
IT WAS AVAILABLE TO HONG KONG, AND THEY DID NOT BELIEVE THAT
THE PROVISION OF FURTHER INFORMATION WOULD MATERIALLY ASSIST
THE PROPOSED NEGOTIATIONS.
3. IT IS CLEAR THAT THE COMMISSION ARE BEING FAR FROM HELPFUL.
HOWEVER I QUESTION WHETHER WE SHOULD RE INSTRUCTED TO MAKE
THE APPROACH SUGGESTED IN PARA 5 OF THE HONG KONG TELEGRAM UNDER
REFERENCE. WE HAVE ONLY VERY RECENTLY, ON YOUR INSTRUCTIONS
FORMALLY TOLD THE COMMISSION THAT THEY WOULD BE DEALING DIRECT
WITH HONG KONG IN THE NEGOTIATION OF THIS ARTICLE 4 AGREEMENT
AND THAT HMG HAD CONCEDED COMPLETE AUTONOMY ON THIS QUESTION
TO HONG KONG. IF WE NOW INTERVENED WE WOULD RISK CREATING
CONSIDERABLE CONFUSION IN THE COMMISSION AND THE COMMUNITY
AND THIS COULD GRAVELY COMPROMISE THE CREDIBILITY OF THE
HONG KONG COVERNMENT AS A NEGOTIATOR IN ITS OWN RIGHT. IN ANY
CASE I DO NOT BELIEVE THAT OUR INTERVENTION AT THIS STAGE
WOULD INDUCE THE COMMISSION TO CHANGE ITS ATTITUDE, WHICH IS
CLEARLY RELATED TO THE TACTICAL HANDLING OF THEIR FORTHCOMING
NEGOTIATIONS WITH HONG KONG.
LAST
REF
B
61
4. AS SEEN FROM THIS POST THE BEST THING WOULD BE THAT HONG
KONG SHOULD PURSUE THEIR REQUEST FOR BASIC INFORMATION BILATERALLY
WITH THE COMMISSION. THIS COULD EITHER BE DONE BY REPLYING
FORMALLY TO THE COMMISSION'S INVITATION AND STATING THAT ACCEPT-
ANCE OF THE OFFER OF NEGOTIATIONS WAS DEPENDENT ON THE PROVISION
OF CERTAIN BASIC INFORMATION; OR ALTERNATIVELY BY ACCEPTING
THE OFFER OF NEGOTIATIONS AND MAKING IT CLEAR, IMMEDIATELY
CONFIDENTIAL
*
/THESE NEGOTIATIONS