Mr Jenkins

HRK TO Habl

145

को

Reference..

MFA: MR TRAN'S CALL AT THE FCO, 9 SEPTEMBER: POINTS TO MAKE

Hong Kong

1. We have received an approach from the Governor of Hong Kong stating he believes that Hong Kong will be subjected to unreasonably harsh treatment in the new bilaterals. He has provided us with a table of figures which, he says, are based on the information you gave him during your visit to Hong Kong in August. Can you confirm whether or not these figures are correct? Can you provide us with the equivalent figures for South Korea and perhaps also Taiwan?

2. The Hong Kong attitude towards the Community is, in many ways, the key to the success, of the current Community approach. If Hong Kong refuses to negotiate or stalls for any length of time,' we run a greater risk of the approach breaking down. Other suppliers will be unwilling to conclude until they see the terms obtained by Hong Kong. We wish the Commission to be fully aware of this point and, for this reason, to avoid unnecessarily harsh treatment of Hong Kong and, in particular, tougher treatment than is given to South Korea.

India and Pakistan

3. You will already be aware that British Ministers are concerned that, where possible, the poorest producers are given somewhat' less harsh treatment than the others. The most important of these will be India and Pakistan. We wonder how far 'special treatment will be possible while keeping within the overall global import ceilings. We would not envisage better treatment on the 8 sensitive products.

HMG's Policy

4.

British Ministers have made their position clear to the Commission, particularly during Mr Dell's meeting with Commissioner Davignon on 19 July. They attach the greatest importance to the Community being able to keep its imports of sensitive products within the global ceilings. The UK will only agree to the renewal of the MFA if the new bilaterals provide satisfactory protection. This will not be an easy judgement to make. What would the Commission regard as the minimum acceptable outcome of the bilateral negotiations.

Plans in case of breakdown

5. We must face the fact that there is a fairly strong possibility that the Community's approach will not succeed. The Community's mandate already provides for certain unilateral action to be taken by the Community in the event of a breakdown in the MFA negotiations. How is the Commission's thinking progressing on the means of action open to the Community in such a case?

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