GRS 1,000 (APPROX) PRIORITY
PHEK CAT/A
CONFIDENTIAL
RECEIVED IN
REGISTRY No.52
TOP COPY
乃
-2DEC1974,
FM HONG KONG 020645Z
HKK 6/598/52
CONFIDENTIAL
[NEUTRAL]
174
TO PRIORITY F C O TELEGRAM NUMBER 1191 OF 2 DECEMBER/INFO
;
PRIORITY BRUSELS (FOR BURGESS), UKREP BRUSSELS, UKMIS
GENEVA (FOR DORWARD) AND HONG KONG. GOVERNMENT OFFICE
LONDON (FC O PLEASE PASS).
HK/EEC TEXTILE NEGOTIATIONS.
FOUR RELATED ASECTS OF HONG KONG'S FORTHCOMING NEGOTIATIONS WITH, THE COMMUNITY ARE BEGINNING TO CAUSE US SOME CONCERN. THESE ARE
(A) STATISTICS:
(B) COVERAGE:
(C) THE BURDEN SHARING FORMULA: AND
(D) THE CALCULATION OF THE RESTRAINT LEVELS.
2. ON STATISTICS, WE ARE PREPARED TO ACCEPT ANY REASONABLE INDICATORS OF DAMAGE, OR OF A THREAT OF DAMAGE, OR OF A REAL RISK OF MARKET DISRUPTION BUT WE MUSTHHAVE SOME EVIDENCE AND' PREFERABLY WELL 'BEFORE WE ACTUALLY MEET AT THE NEGOTIATING TABLE.
3. EXAMINATION OF THESE STATISTICS SHOULD THEN LEAD TO THE COVERAGE OF RESTRAINTS. OUR FEAR IS THAT THE MEMBER STATES WILL DO THINGS THE OTHER WAY ROUND, THAT IS DECIDE WHAT THEY WANT TO SEE COVERED AND, WHERE THE EVIDENCE IS LACKING TO SUBSTANTIATE IT, ATTEMPT TO FORCE US TO ACCEPT THEIR COVERAGE. WE ARE ALSO CONCERNED THAT THE COMMUNITY WILL TRY TO APPLY THE LOWEST COMMON DENOMINATOR THEORY: IN OTHER WORDS THAT RESTRAINTS WILL BE SOUGHT WHERE THERE ARE NONE AT THE MOMENT IN SOME MEMBER STATES (AND WHERE THEY ARE NOT NEEDED OR WANTED BY THOSE MEMBER STATES) BUT ARE REQUIRED TO GIVE A COMMUNAUTAIRE COVER TO THE ARRANGEMENTS. WE HAVE NOT FORGOTTEN, NOR HAVE OUR INDUSTRY,
} •r t ། HOW WE WERE TREATED BY THE SIX OVER COTTON TEXTILES TO FRANCE AND ITALY
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CONFIDENTIAL.