CONFIDENTIAL

UKDEL BRUSSELS TELNO 4 TO HONG KONG

·3.

ABLE TO INFLUENCE THE COMMUNITY OFFER VERY SUBSTANTIALLY IN THE

DIRECTION OF GREATER GENEROSITY, THE GERMANS HAD STARTED BY

PROPOSING A 5 PER CENT ANNUAL GROWTH FIGURE FOR HONG KONG

(THE DISCREPANCY BETWEEN THE 5 PER CENT WHICH THE GERMANS PROPOSED AND THE 12 PER CENT GROWTH WHICH THEY AGREED IN THE HONG KONG/

GERMANY 1979 AGREEMENT IS EXPLAINED BY THE FACT THAT. THE LATTER

RELATES PURELY TO IMPORTS INTO GERMANY, WHEREAS THE FORMER

RELATES TO THE IMPORTS OF THE WHOLE COMMUNITY FOR WHICH THE

GERMANS HAVE HAD TO RECOGNISE THAT A NUMBER OF THEIR PARTNERS

WERE NOT PREPARED TO TOLERATE THE SCALE OF INCREASE WHICH THEY

WERE PREPARED TO HAVE FOR THEIR OWN MARKET). HE THOUGHT THAT,

IF HONG KONG REFUSED TO ACCEPT THE PRESENT 3 PER CENT OFFER,

IT MIGHT BE POSSIBLE TO INCREASE IT TO 4 PER CENT, BUT PROBABLY

NOT ANY FURTHER. HE ADDED THAT, NOW THAT THE COMMUNITY AS A WHOLE

WAS NEGOTIATING IN THIS FIELD, THERE WAS VERY LIMITED SCOPE FOR

ONE MEMBER STATE TO CAUSE ITS VIEWS TO PREVAIL IF THEY WERE OUT OF

THOSE OF

TUNE WITH / THE OTHER MEMBER STATES AND OF THE THE COMMISSION,

IN THIS CASE THE COMMISSION HAD RECEIVED A RATHER IMPRECISE

MANDATE AND THIS IN FACT STRENGTHENED ITS NEGOTIATING HAND

VIS-A-VIS THE MEMBER STATES.

CONFIDENTIAL

15.

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