CONFIDENTIAL
IMMEDIATE
CYPHER/CAT A
FM HONG KONG 220758Z
CONFIDENTIAL
[FRAME]
32
A 2 24TH
TO IMMEDIATE F C O TELNO 212 OF 22ND FEBRUARY, 1973. INFO IMMEDIATE UKREP BRUSSELS, BRUSSELS (FOR DODGE) HONG KONG GOVERNMENT OFFICE LONDON. INFO PRIORITY UKMIS GENEVA (FOR PEARSON), BONN, DUBLIN, COPENHAGEN, THE HAGUE, LUXEMBOURG, PARIS AND ROME.
BRUSSELS TELEGRAM NO 6 TO ME AND BONN TELEGRAM CREDA 2 TO DTI.
LABT
BEF
Jo
NON-COTTON TEXTILES.
IT WOULD APPEAR FROM THE TELEGRAMS UNDER REFERENCE THAT, WHILE HONG KONG'S UNILATERAL RESTRAINT ACTION IS NOT IN LINE WITH WHAT THE CERMANS WOULD IDEALLY WISH, IT IS NONETHELESS HOLDING UP FOR THE TIME BEING AT LEAST. THUS, ALTHOUGH IT SEEMS PROBABLE THAT, FOR DOMESTIC REASONS, THE GERMAN DELEGATION AT THE 22ND FEBRUARY MEETING IS LIKELY TO EXPRESS DISSATISFACTION WITH OUR MOVE, THEY ARE UN- LIKELY TO CARRY THIS AS FAR AS TO PRESS FOR AGREEMENT ON A MANDATE FOR THE COMMUNITY AS A WHOLE TO SEEK EARLY NEGOTIATIONS WITH HONG KON
ON NON-COTTON TEXTILES.
2. AS INDICATED IN OUR TELEGRAM 186, WE DO NOT SEE OUR UNILATERAL ACTION AS A SOLUTION FOR ALL TIME. RATHER WE SEE IT AS A HOLDING
OPERATION TO ALLOW THE COMMUNITY TIME TO DEVISE A COMMON COMMERCIAL POLICY ON TEXTILES AS A WHOLE, FREE FROM IMMEDIATE PRESSURES FOR EARLY COMMUNITY ACTION TRIGGERED BY PARTICULAR INSTANCES, SUCH AS
HONG KONG IN THE CASE OF GERMANY. WE WOULD HOPE THAT SUCH A POLICY, WHEN IT EVENTUALLY EMERCES, WILL BE CONSIDERABLY LESS RESTRICT- IONIST THAN THE COMMISSION'S PROPOSALS (1.E. WILL PAY DUE REGARD TO THE NEED TO SHOW INJURY IN PARTICULAR CASES) AND THAT IT
WILL BE RELATED TO THE OUTCOME OF THE TEXTILE DISCUSSIONS IN GATT AND
NOT JUST BE BASED ON SHORT TERM CONSIDERATIONS.
3. FOR THESE REASONS WE WOULD VERY MUCH HOPE THAT AT THE 22ND FEBRUARY MEETING YOU WILL FEEL ABLE TO CONTINUE TO RESIST A MANDATE FOR COMMUNITY-WIDE NECOTIATIONS WITH HONG KONG ONLY.
CONFIDENTIAL
/4. FOR YOUR