香港總督府

CONFIDENTIAL

Euler

GOVERNMENT HOUSE

HONG KONG

44A

Un Dully

Der Dudd,

11th June 1977

Copied, with originals of anclormer.

to Mu from kis (E), who

will advice..

THE MULTI-FIBRE ARRANGEMENT

Drmillon

I am becoming increasingly worried about

the MFA. Not only are the views of HMG and this Government at total variance, but they are based on analyses of the situation that are completely different and we are unable to start a dialogue to reconcile them. I enclose a copy of a letter from Peter Carey to David Jordan of 27th May that makes clear the DOI have no intention of entering into such a dialogue and envisage leaving the whole thing for fighting out in Geneva. Moreover he makes clear that the DOI has not abandoned its attempt to get the MFA changed.

2.

What might be described as the EEC view which is reflected in Mr. Meacher's speech of 21 February, is hotly contested by the developing countries and many others. We are therefore on collision course. In the confrontation that seems inevitable, because of Hong Kong's expertise, I can see our delegation being constantly pushed into the position of making the case for developing countries and exposing the EEC view. I am sure that this unwelcome position will be used by UK protectionists and other critics of Hong Kong to smear this Government and accuse it of leading the hunt against European and British interests. It is a most unpleasant prospect.

3.

We have tried to give proper warning of what was happening. We provided a detailed critique of the current UK position. We asked for comments on it in an attempt at least to approach the problem from an agreed factual basis, but no reasoned response has reached us, and it is clear from Carey's letter that none is intended.

D.F. Murray Esq., CMG,

Foreign & Commonwealth Office,

London, SW1A 2AH

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