of 80
be seen now is the extent to which our reaction to Mr Tran and that of others he visited will induce a less severely protectionist view in Brussels and a recognition of the dangerous consequences for the EEC itself if the situation is allowed to deteriorate,
24
Instructions for the Hong Kong negotiators in Brussels will be drawn up, in consultation with the Textile Advisory Board, as and when information is available regarding the development of the EEC negotiating mandate. Whether or not the EEC's present ideas, as described by Mr Tran, will be modified on reflection, it is diffi- cult to say, but the chances are not high. Accordingly, urgent consi- deration is now being given to the desirability of making high level representations in London with a view:
(a)
(b)
to ensuring that the consequences of the EEC's present attitude towards trade in textiles from 1978 onwards for economic stability and social progress in Hong Kong are fully understood, particularly in the Foreign and Commonwealth Office; and
to encouraging HMG, through the relevant depart- ments, to exercise a moderating influence on the development of the EEC's negotiating mandate.
25
This memorandum (paragraphs 1-23) was originally written only for the information of Honourable Members, but it is now known that the EEC Commission hope to begin work on the preparation of a negotiating mandate on 5th September with a view to presenting it to the Council of Ministers for endorsement on 19th September. It is not expected that this programme will be adhered to but, even so, time is short. Accordingly, Honourable Members will have to be asked at their meeting on 30th August for their advice on the move proposed in paragraph 24 above.
(The Director of Trade, Industry and Customs (Acting) (Mr W. DORWARD) will be in attendance to answer any questions which Honourable Members may wish to raise).
27th August 1977
COUNCIL CHAMBER
CONFIDENTIAL