CONFIDENTIAL
FLASH
CYPHER/CAT A
FM HONG KONG 220525Z
CONFIDENTIAL [FRAME]
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NKKG/E NKK 6/6
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TO FLASH FCO TELNO 84 OF 22 JANUARY. 1973
YOUR
YOUR TELEGRAMS 61 TO ME AND 54 TO BONN.
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PROPOSED EEC/HK NEGOTIATIONS ON NON-COTTON TEXTILLES..
همه
Z
22/1
WE AGREE GENERALLY WITH THE LINE YOU PROPOSE. WE WOULD, HOWEVER, LIKE TO ADD THE FOLLOWING POINTS:
) WE ARE CONCERNED AT THE SINGLING-OUT OF HONG KONG WITHOUT MENTION OF OTHER SUPPLIERS AND THEIR SHARE OF THE MARKET:
(11) WE WOULD URGE THAT AMENDMENT TO GATT ARTICLE XIX' SHOULD IDT BE PRESSED AND PREFERABLY NOT MENTIONED: WE BELIEVE THAT ANY AMENDMENT TO ARTICLE XIX THAT WOULD SOLVE THE 'TEXTILE PROBLEM’ WOULD INVOLVE SUCH WEAKENING OF THE SERIOUS INJURY CRITERION AS TO OPEN THE DOOR TO WIDESPREAD RESTRAINTS ON TRADE:
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THE
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11) ACCORDING TO OUR EXPORT STATISTICS 'DRAMATIC INCREASE' IS IN POLYESTER/COTTON GOODS, NOT IN NON-
COTTONS GENERALLY:
(IV) IT WILL PROBABLY BE NECESSARY FOR YOU TO EMPHASISE THE DISTINCTIVE FEATURES OF THE UK/HK POLYESTER/COTTON NEGOTIATIONS AND AGREEMENT:
(V) IF THE GERMANS REFER TO HONG KONG'S COTTON SHIPMENTS, YOU CAN ASSURE THEM (AS JORDAN DID IN DECEMBER) THAT WE SHALL NOT EXCEED THE TONNAGES IN THE AGREEMENT THIS YEAR. THIS SHOULD HAVE A CONSIDERABLE EFFECT ON TOTAL (COTTON PLUS MMF) QUANTITIES:
(VI) WITH REFERENCE TO YOUR (E), WE WOULD ADD THAT THE SELECTIVITY
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CONFIDENTIAL
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