1. cc T. Duffy, HK+GD
2. Enter MFA
P Richardson Esq JP, LL B, FCIS
Director
Wool Textile Delegation
Lloyds Bank Chambers
Hustlergate
Bradford BD1 1PE
Chemicals & Textiles Division.
DEPARTMENT OF INDUSTRY
MILLBANK TOWER
MILLBANK
LONDON SWIP 4QU
Direct Line 01 211 5122
Switchboard 01 211 3000
12 11 July 1977
C/A Д
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HONG KONG'S VIEWS ON THE MFA RENEGOTIATION
We had not received
Thank you for your letter to me of 20 June. a copy of the document dated 10 May from the Hong Kong Government Office, to which you referred, and I am afraid that my reply to you has, therefore, been a little delayed.
I have now studied the document together with your comments with great interest. I think it needs to be said straight away that the Community's agreed line on 'cumulative disruption' is somewhat different from that envisaged in para 4 of the Hong Kong document. It certainly remains the objective of the Community to stabilise levels of import penetration by imports from low-cost suppliers of certain highly sensitive products. However, it has now been agreed that the Community will pursue this objective through negotiations with individual suppliers for quota levels and growth rates for sensitive products that will be compatible with the Community's global ceilings. This approach will not require formal amendments to the MFA.
In general I find myself wholly in agreement with the points you make in your letter. Your concerns are fully reflected in the mandate for the renegotiation that has been approved by the Community Finally, I think you need have no fear about the constitutional position of Hong Kong a cting as a handicap on the policy in the Geneva negotiations of HM Government. The Hong Kong delegate at the Textiles Committee will indeed sit formally as a part of the UK delegation but this will not impede either party from arguing its
On trade matters the Hong Kong Government speaks for itself.
case.
1
bc
Mr Wright CRE1)
Mr Stern FCO
with papers