CCAFABE PIAL

(iii)

6.

ceilings. It would be hard to keep the fact of an UKREP

approach to the Commission from them since they are in

daily contact with the Commission over the MFA.

No other Member State has much sympathy for Hong Kong.

They all believe that any increased protection the Community

is going to get from the next textile negotiations should come

at the expense of the "super competitive" countries, Hong Kong,

South Korea and Taiwan, in order to give room to be less

tough with the poorest countries and leave room for newcomers

to the Community's textile market.

I have in fact this morning spoken to Mr Elliott in UKREP.

He strongly endorses the line of argument in paragraph 5 of this

submission. He adds that the Commission have this morning approved

a document on the lines foreshadowed by Tran at the Textiles Working

Group on 5 September (UKREP tel no 5121), but without the country

by country figures for the suppliers.

Mr Tran's visit on 9 September

7.

As stated in para 4 above, DOI and DOT, the lead Whitehall

Departments are only really interested in the global ceilings for the

sensitive textile products. Without seeing the breakdown of suggested

quotas from all the supplying countries, it would be hard for them

to take a judgement on how much the UK is prepared to take from Hong

Kong. It is the Commission's responsibility to produce this breakdown

and we cannot get a meaningful answer from the Department of Industry

who have naturally left the work to the Commission. Preparation of

detailed UK objectives in the negotiations is in hand; the FCO

is represented on the interdepartmental committee. But it has not

been possible to adopt final positions pending the Commission's

precise proposals as to the allocation of quotas between the supplying

CONFIDENTIAL

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