LORD GORONWY-ROBERTS'S MEETING WITH MR KEVIN SINCLAIR OF THE SOUTH CHINA MORNING POST - 10 DECEMBER 1975
BRIEF NO. 6
HONG KONG/EEC TEXTILE AGREEMENT
Line to Take
1. We consider that the EEC/Hong Kong agreement was a good one from Hong Kong's point of view. Thanks to the skill of the Hong Kong negotiators, Hong Kong has gained assured access to the Community
market.
2. We know that Hong Kong has given a different interpretation to the agreement as it applies to 1975 from that given by the Commission and all Member States of the Community. However, we believe it
would be unfortunate if the lesser matter of transitional arrangements
for 1975 caused difficulties in the smooth operation of the agreement as a whole. We believe that Hong Kong's 1975 exports to the Community in a number of categories are causing serious difficulties to several Member States. The Community has therefore requested consultations with Hong Kong to resolve these practical difficulties. The first round in Hong Kong was inconclusive. We hope that the second round, due to begin in Brussels on 15 December, will be more
successful.
3. The Hong Kong interpretation of the agreement and the consequent issue by Hong Kong of 45.8% of the annual quota to cover the period between the entry into force of the agreement and the end of the year has given rise to the difficulties being experienced by Member States. We believe that unless the negotiations in Brussels next week (15-16 December) are successful in overcoming these difficulties, the Community may find itself in an unfortunate position which could have results that would not be to the advantage of Hong Kong.