CONFIDENTIAL
5. IN THE LIGHT OF PARAGRAPH FOUR OF PARIS TELNO.691, WE ARE PREPARED TO LET MATTERS STAND FOR A FEW MORE DAYS IN THE EXPECTATION THAT AS SOON AS THE COMMUNITY-BASED MEASURES HAVE BEEN IMPLEMENTED, THE SITUATION AS FAR AS HONG KONG EXPORTS TO FRANCE IS CONCERNED WILL RETURN TO NORMAL. IF THIS DOES NOT HAPPEN WITHIN THE NEXT TEN DAYS OR SO AND THE FRENCH STILL REFUSE TO HONOUR THE AUTOMATIC LICENSING SYSTEM PROVIDED FOR IN ANNEX 111 OF THE SEC/HK TEXTILES AGREEMENT FOR SHIPMENTS MADE AFTER 23 JUNE,
WE SHALL HAVE TO RECONSIDER OUR POSITION..
MACLEHOSE
FILES HK & GD (5)
EID
WED
FRD
TREO
COPIES TO
MR S T KIDD HONG KONG GOVT OFFICE
PS/LORD GORONWY-ROBERTS
PS/MR TOMLINSON
PS/MR JUDD
PS/PUS
MR CORTAZZI
MR BUTLER
MR H13BERT MR FRETWELL MR HAWLEY
-2- CONFIDENTIAL