this in perspective, Hong Kong exports of textiles and clothing to the EEC in 1976 amounted to $5,878 million out of global exports of these products of $17, 165 million.
16
The Hong Kong side responded sharply to the EEC Commis- sion's proposals and said that they did not offer even a basis for further discussions. Mr Tran took this reaction calmly and said that he would go back to Brussels after his visit to Korea and Brazil and draw up a negotiating mandate for consideration by the EEC in early September. He still expected negotiations with Hong Kong to start on or about 10 October in Brussels.
Assessment
17
Mr Tran's proposals were so unreasonable that he could not have expected Hong Kong either to accept them or to regard them as a basis for the negotiation of a bilateral agreement. His approach was, therefore, clearly a try-on and he was either trying to frighten Hong Kong into subsequently accepting some less severe cut-backs or he was trying to provoke a sharp rebuttal from Hong Kong which he could then report to the Commission and the Member States in the hope of obtaining a more reasonable mandate; or perhaps a bit of both.
18
There is no doubt that protectionist sentiment and influence is now higher in the EEC (and elsewhere) than for many years. By any standards, the threats recorded in paragraph 13 (b) and (c) and the proposals recorded in paragraph 14 above mark a deterioration of significant proportions in the normal standards of international beha- viour, let alone respect for international obligations. The EEC Commissioner for External Relations has recently warned Member States that the dangers of a slide into the protectionist policies which so damaged the pre-war world economy are greater than at any time in the past thirty years.
19
The threat is not confined to textiles and recent protectionist actions on trade in footwear, steel and television sets point up the dangers. The textile issue is, however, the one most likely to have wide and far reaching ramifications; and the impending Hong Kong/ EEC negotiations will have a considerable bearing on its future.
20
Tran's message is clear. The EEC, or a significant part of it, has decided it wishes to freeze imports at 1976 levels. This is because there has been a surge in imports in recent years, a decline in employment (repeatedly alleged to be 500,000 jobs since 1973) and a large number of plant closures. Restrictions can, for political and contractual reasons, only be imposed on a limited
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