Mr Fretwell
Mr Cortazzi
PS/PUS
CONFIDENTIAL
HKK 121 616/1
RECENZO I KROM AFCPS/Mr Judd or
136K
INDEX
2 1 SEC MOS
J
Mr Butler
Mr Murray or
Mr Milton HK&GD Mr O'Neill SAD
11606
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PS/Lord Goronwy-Roberts
Private Secretary
HONG KONG AND THE MULTI FIBRE ARRANGEMENT
PROBLEM
1.
On 7 September, the Commission approved a paper, which
will be put to the Council on 20 September, outlining its approach
to the negotiation of new bilateral textile agreements under the
GATT Multi Fibre Arrangement.
2.
The Governor of Hong Kong has been unofficially informed
by the Commission negotiator (Mr Tran) of the figures for their
textile quotas for sensitive products which are likely to result
for Hong Kong. He has written to the Department to express his
concern at the effect on Hong Kong's economy; and he has further
implied that it could damage the climate in which the China Light
and Power Stration contract could be awarded. The basic question
is how far HMG should indulge in special pleading for Hong Kong
in view of its status as a dependent territory.
BACKGROUND AND ARGUMENT
The Community
3.
The effect of the proposals in the paper will be to set
up Community internal global import ceilings for all its major
textile importants and divide those ceilings between the various
supplying countries in such a way as to ensure that:
(a)
(b)
there is no risk of the ceilings being exceeded;
room is left on the Community market for newcomers and
small suppliers;
CONFIDENTIAL