LAST
REF.
CONFIDENTIAL
CYPHER/CAT A
38
PRIORITY UKDEL E.E.C. BRUSSELS TO FOREIGN AND COMMONWEALTH OFFICE PRIORITY UKDEL E.E.C. BRUSSELS TEL. NO. 5 TO HONG KONG 24 MARCH 1970 CONFIDENTIAL [NEUTRAL]
ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NO. 5 OF 24 MARCH REPEATED
FOR INFORMATION TO FOREIGN AND COMMONWEALTH OFFICE, UKMIS GENEVA
(FOR JONES), BONN AND SAVING TO BRUSSELS (FOR DODGE), PARIS,
THE HAGUE, ROME AND LUXEMBOURG.
READ IN REGISTRY No.51
EEC/HONG KONG COTTON TEXTILES TALKS.
HIC
116/6
SECOND ROUND OF CONSULTATIONS BETWEEN COMMISSION AND HONG
KONG OFFICIALS WAS HELD ON 23 MARCH.
2.
IN THE COURSE OF A HARD, BUT AMICABLE, CONFRONTATION ERNST
MADE THE FOLLOWING OFFER, WHICH, IN CONRAST TO THE PREVIOUS ROUND
WAS A FORMAL ONE, IN THE CONTEXT OF EXTENSION OF LTA FOR A FURTHER
THREE YEARS.
(1) AN ARTICLE 4 AGREEMENT WITH WHOLE COMMUNITY COVERING
YEARS 1971/3 AND WITHIN FRAMEWORK OF EEC ''MODEL
(2)
(3)
i
AGREEMENT'':
COVERAGE ALL COTTON TEXTILES EXCEPT YARNS:
BASE TO BE HONG KONG'S ACTUAL EXPORTS IN 1969 (11,986
METRIC TONS) WITH GROWTH OF 3% P.A. EXPRESSED AS A FLAT
AVERAGE FIGURE OVER WHOLE THREE YEARS 6% HIGHER THAN
BASE: THUS INDICATING THAT ERNST HAS ABANDONED HIS
PREVIOUS EXAGGERATED 1969 ESTIMATES:
(4)
OVERALL QUOTA TO BE DIVIDED INTO SUB-QUOTAS FOR
(5)
INDIVIDUAL MEMBER STATES:
CATEGORISATION WITHIN 34 CATEGORIES IN MODEL AGREEMENT
TO BE NEGOTIATED BUT TO BE UNIFORM FOR EXPPORTS TO ALL
MEMBER STATES:
(5) 10% CARRYOVER AND 5% ANTICIPATION:
CONFIDENTIAL
./(7)