TOP COPT
(92)
CYPHER/CAT A
PRIORITY BRUSSELS
TO
CONFIDENTIAL
GOVERNOR HONG KONG,
TELEGRAM NO. 39
9 OCTOBER 1970
CONFIDENTIAL
0014382
[NEUTRAL]
ADDSD TO GOVERNOR HONG KONG TEL NO. 39 OF 9 OCTOBER RFI SAVING
TO UKDEL E E C.
FROM DODGE.
COTTON TEXTILES HONG KONG/E E C.
YOUR COMMERCIAL TEL B.6 REFERS.
MY PRECIS OF E E C PAPER FOLLOWS.
2.
GENERAL CONSIDERATIONS. OFFER REPRESENTS IMPROVEMENTS ON
THE CURRENT SITUATION AND IS A SIMPLE EXTENSION. GERMANY/DENELUX
TAKE 95% COMMUNITY IMPORTS OF HONG KONG GARMENTS, AND 72% OF
COMMUNITY GROUP 1 IMPORTS. EXISTING ARTICLE 4 AGREEMENTS REFLECT
HONG KONG PAST ACCEPTANCE OF PRINCIPLE OF ALMOST GENERAL COVERAGE.
IMPROVEMENTS ARE OFFERED NOT ONLY IN NEW CEILINGS BUT ALSO IN
INCREASED FLEXIBILITY, SWING, ETC. THE FRENCH WILL GIVE UP IMPORT
CONTROL. THE LEVELS FOR ITALY ARE HIGH ENOUGH TO CONSTITUTE NO
ACTUAL OBSTACLE TO TRADE, COMMUNITY COTTON TEXTILE INDUSTRY IS
IN PRECARIOUS SITUATION. PRODUCTION (FIBRES EXCEPTED)
IS DOWN 5% SINCE 1966 WITH SLIGHT BUT EXCEPTIONAL IMPROVEMENT IN
1969 NOT MAINTAINED THIS YEAR,
3. DETAILED ANALYSIS. OFFER IS A 'PACKAGE', COMMUNITY OBLIGATIONS INVOLVE CERTAIN EQUILIBRIUM IN CONCESSIONS TO LDC EXPORTERS. NEED
TO GIVE GROWTH POSSIBILITIES TO LDCS DEALING IN PRIMARY PRODUCTS.
HONG KONG'S PARTICULAR NEEDS HAVE ALSO BEEN TAKEN INTO ACCOUNT
AND QUOTAS OFFERED ARE COMMUNITY HIGHEST EVER UNDER CTA. HONG
KONG VERY COMPETITIVE, WILL BENEFIT BECAUSE BULK OF TRADE IS IN GARMENTS, ETC., WITH HIGH VALUE ADDED CONTENT. IMPROVED ADMINISTRAT- →IVE ARRANGEMENTS SHOULD LEAD TO FULLER UTILISATION OF QUOTAS.
14.
HILKELL
CONFIDENTIAL