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Mr Murray
CONFIDENTIAL
HKK.013
RECEIVED 31 PAGISTRY'NO. 51
- 7 OCT 1977
DESK OFFICER INDEX
PA
GOVERNOR'S ADDRESS AT THE OPENING OF THE NEXT SESSION OF THE LEGISLATIVE COUNCIL
REGISTRY
Action Taken
1. The Governor has now revised those sections of the draft of his speech dealing with the Multi-Fibre Arrangement. Since the speech is to be delivered at 7.00 a.m. London time tomorrow he has not left us much time to comment!
Multi-Fibre Arrangement
The proposed text contained in Hong Kong telegram no. 994 is critical of the proposed Community negotiating mandate for a new bilateral textile agreement with Hong Kong, in as far as it is known to the Governor. It reiterates publicly the theme the Governor developed in London and Brussels that the Community is seeking to benefit the poorer developing countries not at its own expense but at the expense of hapless third countries like Hong Kong. His only reference to the UK is not, however, couched in critical terms and nowhere is it suggested that we have taken a leading part in drafting the mandate.
3. I do not believe the critical tone of his speech will significantly damage UK interests in the textile field. We have also consulted the Department of Trade, who do not consider that the speech is likely to have any further adverse effect on British chances of obtaining major contracts in Hong Kong. During his visit to London the Governor gave no hint that Hong Kong would refuse to sign a bilateral agreement with the Community. Indeed he implied that they may be forced to accept a deal which they would not like at all. We made perfectly clear to hịm that Hong Kong had some negotiating margin but could not hope to get even as high as the level of 1976 sendings to the Community. In fact, partly due to our pressure in Brussels, the offer to Hong Kong is likely to be improved. The Governor has made some effort to pave the way for public acceptance of a tough agreement but he could perhaps have done more.
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