1.

WE ALONE OF THE MAJOR SUPPLYING COUNTRIES INVOLVED ARE NOW

DISCRIMINATED AGAINST IN THE MATTER OF PREFERENCES AND THE

FACT, AS I HOPE I HAVE PROVED YOU CONVINCINGLY,

THAT WE

HAVE REALLY SUFFERED DIVERSION OF TRADE AS A RESULT, IT WILL

COME AS NO SURPRISE TO YOU THAT HONG KONG VIEWS THE SUGGESTION

OF NEGOTIATING FURTHER QUANTITATIVE RESTRICTIONS WITH

CONSIDERABLE RELUCTANCE AND CONCERN.

f

THE MTA PROVIDES

ADEQUATE SAFEGUARD MECHANISMS TO COPE WITH ACTUAL MARKET

DISRUPTION.

INDEED, IT WOULD NOT BE TOO MUCH TO STATE

THAT WE CANNOT REALLY FORESEE A MUTUALLY AGREEABLE SUCCESSFUL

OUTCOME OF ANY BILATERAL NEGOTIATIONS WITH THE EEC ON

COMPREHENSIVE QUANTITATIVE RESTRICTIONS UNLESS AND UNTIL

THE CURRENT DISCRIMINATION AGAINST US IS TOTALLY REMOVED.

IT IS THEREFORE THE HOPE OF THE HONG KONG

GOVERNMENT THAT YOU WILL SUPPORT HER MAJESTY'S GOVERNMENT

IN ALL HER EFFORTS TO ACHIEVE THIS END IN THE APPROPRIATE

FORUM OF THE EEC AS IT HAS ALREADY INDICATED IT INTENDS

RESOLUTELY TO DO.

29.

I AM VERY GRATEFUL TO YOU FOR AFFORDING ME THIS

OPPORTUNITY TO PRESENT YOU WITH A SUMMARY OF THE HONG KONG

VIEWPOINT AT THIS PARTICULAR STAGE IN THE EEC'S DELIFERATIONS

ON ITS 1975 GSP ARRANGEMENTS.

/I SHALL BE

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