CYPHER/CAT A

CONFIDENTIAL

PRIORITY UK MISSION GENEVA TO FOREIGN AND COMMONWEALTH OFFICE

TELEGRAM NUMBER 451

CONFIDENTIAL

NEUTRAL

(46)

19/0

-23 JUNE 4975

LAST

REF

TAKKG / 18

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48

ADDRESSED TO FCO TEL NO 451 OF 23 JUNE REPTD FOR INFMN TO HONG KONG

AND SAVING TO PEKING.

YOUR TELEGRAM NO. 274: U.K. RELATIONS WITH HONG KONG ON TEXTILES.

IN THE ABSENCE OF SIR E. MELVILLE AND OF THE HONG KONG REPRESENTATIVE IN THIS MISSION, I HAVE THE FOLLOWING COMMENTS.

2. FROM YOUR PARAGRAPHS 6 AND 7 IT APPEARS THAT THE NEW APPROACH WOULD APPLY BOTH TO DISCUSSIONS IN GATT (AND OTHER INTERNATIONAL ORGANISATIONS) AND IN THE CONDUCT OF BILATERAL NEGOTIATIONS. BUT IF THE INTENTION IS TO GIVE HONG KONG THE SAME DEGREE OF INDEPENDENCE OF ACTION ON NON-COTTONS AS AT PRESENT ON COTTONS IN THE GATT, THE GATT POSITION NEED NOT GREATLY CHANGE FROM WHAT IT IS NOW. FOR IN THE COTTON TEXTILE COMMITTEE THE HONG KONG REPRESENTATIVES SPEAK AS PART OF THE U.K. DELEGATION AND ARRANGEMENTS HAVE, IN PRACTICE, BEEN WORKED OUT TO AVOID THE EXPRESSION OF CONFLICTING VIEWS. THUS, ALTHOUGH HONG KONG PARTICIPATES IN ITS OWN RIGHT IN THE LTA, PRACTICE IN THE CTC DOES NOT DIFFER ESSENTIALLY FROM THAT IN OTHER GATT

COMMITTEES AND WORKING PARTIES WHERE IT IS GENERALLY UNDERSTOOD THAT

THE HONG KONG REPRESENTATIVE REPRESENTS HONG KONG'S DETAILED VIEWS

WITHIN HMG'S OVERALL POLICY.

3a COTTON TEXTILES HAVE, FOR THE PAST FEW YEARS AT LEAST, FOR SOMEWHAT SPECIAL REASONS HOT OFFERED SCOPE FOR MAJOR DIVERGENCES

SUCH AS MIGHT ARISE OVER THE NON-COTTON ISSUE, WHERE IT IS ALREADY

WIDELY KNOWN THAT HONG KONG FAVOURS DIFFERENT SOLUTIONS FROM THE U.K.

DISCUSSIONS IN RELATION TO INJURY CRITERIA INVOLVING NEW GLOSSES ON

ARTICLE XIX COULD ALSO GIVE RISE TO IMPORTANT DIFFERENCES IN THE NEXT 12 MONTHS, IN GATT IT WOULD THEREFORE BE PREFERABLE TO RETAIN THE QUOTE SPECIAL ARRANGEMENTS UNQUOTE FORMULA ON HONG KONG/U.K. CO-ORDINATION FOR MULTILATERAL DISCUSSIONS AND INTERNATIONAL

ORGANISATIONS WHICH WAS CONTAINED IN THE LATEST VERSION WE HAVE SEEN OF THE PROPOSED CONCORDAT: AND 1 HOPE THAT IT IS NOT YOUR INTENTION

TO CHANGE IT FOR THE SPECIAL CASE OF NON-COTTON TEXTILES.

CONFIDENTIAL

/4. AS

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