cceptable, and we leave to your discretion just how
far
ar you go in floating such ideas. Certainly, the limi tation of quotas to products where Hong Kong is a Substantial supplier is more equitable, and reduces The administrative burden of quotas.
+
Even if the Barger proposal manages to overcome predictable opposition within the Administration to We complications of operating duty quotas on behalf
one beneficiary, there remains the American con- tion that the EEC and Japan should also include the
Lurritory.
We will continue to press the Japanese as they ratnatmfma etreat from one excuse to another (xxxg the sug- stions in UKMIS Geneva telno 772 indicate a line
take). However, in the last resort, we should be epared to tell the Americans that their insistence on a Japanese contribution is unjustified, as it merely provides Japan with an easy way of damaging
competitor in the US market. Japan may thus be tem- ted to exclude Hong Kong from the Japanese offer purely and simply to ensure that the US followed suit.
With regard to the EEC, the Deputies meeting -lay may show whether there is some light at the dud of the tunnel, and a willingness to offer Hong Kong a qualified admission to the EEC references Scheme. If you are able to delay your approach to The US administration for another two days, we may
(cpending on the outcome of the meeting in Brussels)
be able to provide a useful, eg for your approach and
the same time go some way towards meeting the American condition.
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