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to play the card of discussion on the basis of some version of the Barger proposals (duty-free quotas for Hong Kong which, I might add, Hong Kong would be prepared to administer).

5.

All this means that we are not really far enough forward in our bilateral contacts for it to be likely that definitive multilateral discussion in the OECD will be fruitful at this stage. This does not mean that there should be no discussion but I think that we should aim to get some agreement that the issue should be carried forward to the next meeting of the Trade Committee, by which time we should have made more progress in the various bilateral talks,

co:

(D.J.C. Jones)

Counsellor (Hong Kong Affairs)

3.0. Laird, Baq., Hong Kong Dept., FC0

R.G. Britten, Esq., Trade Policy Dept., FCO.

J.W.D. Gray, Esq., UKNIS, Geneva.

T. Muir, Esq., UKDEL to CECT,

CECP, Paris.

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