CODE 18-77

SS 10/76

NOTE FOR THE FILE

Reference HKK 121

1214/616/1 160

MULTI-FIBRE ARRANGEMENT

1.

Mr Murray discussed with Mr Stern (EID) and myself the Governor's letter dated 3 September 1977 in which the latter expressed his fears about possible measures by the EEC against Hong Kong textiles. Mr Stern pointed out that the annex to the Governor's letter showing the potential value loss on the basis of EEC proposed 1978 limits for certain sensitive textiles would need to be confirmed by Mr Tram, the EEC special representative who will be visiting London on 8-9 September for discussions with DOI and DOT. It was agreed therefore that Mr Murray would submit to the PUS suggesting that a decision on the facts could only be taken after Mr Tran's visit and suggesting that a telegram to this effect be sent to the Governor indicating also that the Governor may be required to come to London next week.

2. It was agreed that if following Mr Tram's visit it was decided that the Governor should come, then the best time for him; to come would be at the time the submission on the EEC's proposals was made to Ministers. This is due on 16 September and the Governor could then make representations on behalf of Hong Kong before a final decision by Ministers was taken. It was thought that Mr Dell would be the best Minister to see the Governor since Mr Meacher would be likely to give a dusty reply to any objections.

3. Mr Stern will send a copy of the Governor's letter to UKREP Brussels and to DOI and DOT.

7 September 1977

T Duffy

Hong Kong & General Department

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