☛
IMMEDIATE
CYPHER/CAT A ̧,
CONFIDENTIMIK, WM
FM HONG KONG 151050Z
CONFIDENTIAL NEUTRAL]
HKK6/6
1973
کیانگ
38
тор серу.
TO IMMEDIATE FCO TELNO 297 OF 15 MARCH
MARCH INFO UKREP BRUSSELS BRUSSELS (FOR DODGE) HONG KONG GOVERNMENT OFFICE LONDON (FCO PLEASE PASS).
36) MY TELEGRAM 281 TO YOU: NON-COTTON TEXTILES.
JONES HAS REPORTED BRIEFLY ON HIS DISCUSSIONS WITH STUART AND DTI OFFICIALS ON 12 MARCH, AND I AM GRATEFUL FOR THE ASSURANCE THAT YOUR BASIC ATTITUDE THAT ACTION FOR RESTRAINT SHOULD BE CONFINED TO CASES WHERE INJURY COULD BE PROVED HAS NOT CHANGED. WHILST WE DO NOT DENY A CASE OF ACTUAL OR THREATENED MARKET DISRUPTION MAY EXIST, WE HAVE YET TO BE SHOWN ANY EVIDENCE OF ITS EXISTENCE IN THE MARKETS OF ANY OF THE OTHER EIGHT MEMBER STATES, INCLUDING
GERMANY.
2. I HAVE NOTED THAT YOU HAVE FELT OBLIGED TO AGREE, IN PRINCIPLE, TO A COMMUNITY NEGOTIATION FOR A RESTRAINT AGREEMENT WITH HONG KONG (NOTWITHSTANDING THE ABSENCE OF INJURY OR DISRUPTION) BECAUSE OF OUR AGREEMENT ON POLYESTER/COTTON (WHERE WE INSISTED ON, AND YOU PRODUCED A CASE FOR RESTRAINT). WE HAVE ALSO NOTED THE ASSESSMENT THAT THE MINIMUM LIST OF SENSITIVE PRODUCTS TO BE INCLUDED IN ANY ULTIMATE MANDATE FOR THE COMMISSION COULD NOT BE LESS THAN OUR CURRENT UNILATERAL RESTRAINT TO GERMANY. WE ARE HOWEVER, NO LESS CONCERNED THAT THOSE MEMBER STATES WITH WHOM WE HAVE LITTLEOR NO TRADE WILL ATTEMPT TO WRITE IN TO A MANDATE THEIR PRESENT LEVELS OF TRADE, AS THE FRENCH DID WITH THEIR DERISORY LEVEL OF IMPORTS (UNDER QR'S) IN THE HK/EEC COTTON AGREEMENT. IF THIS SHOULD BE REPEATED HERE, NOT ONLY WOULD WE BE DEPRIVED OF ACCESS TO MARKETS WHERE THERE IS NO DISRUPTION, BUT A PRECEDENT WOULD BE SET FOR THE COMPLETE FRUSTRATION OF YOUR OWN PROPOSALS FOR A COMMON POLICY ON
TEXTILES.
3. WE WILL, OF COURSE, GIVE FULL CONSIDERATION TO YOUR VIEW THAT THERE IS LITTLE OR NOTHING TO LOSE, AND POSSIBLY A LOT TO BE GAINED IF WE ARE TO EXTEND OUR UNILATERAL RESTRAINT TO THE BENELUX, PARTICULARLY AS SUCH AN EXTENSION WILL STRENGTHEN YOUR HAND IN RESISTING ANY UNREASONABLE MANDATE FOR COMMUNITY NEGOTIATIONS
CONFIDENTIAL
/WITH HONG KONG.