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Sweden and Norway are both expected to want to continue
the current restraints in 1978. Hong Kong has resisted
previous Norwegian demands for reduced access.
If
Hong Kong conceded any cut-back at all to the EEC now,
it would be defenceless against the Norwegians who are
bound to renew their demands for cut-backs, and against
the Swedes who are certain to follow suit.
3.4
In Canada, as the result of a recent
recommendation by the Textiles and Clothing Board, it
is expected that an attempt will be made shortly to negotiate bilateral agreements with Hong Kong and certain
other suppliers to restrain clothing currently subject
to Article XIX import controls. The anticipated basis
of the Canadian request is inconsistent with the MFA,
but the ability of Hong Kong to defend the position
would be substantially weakened if it had been forced
to concede to EEC demands for cut-backs in access rights.
3.5
These indirect consequences of a cut-back.
in access rights to the EEC are, of course, not
. quantifiable but could probably be of considerable
significance for the development of Hong Kong's economy.
/4•
GARİPİDENTIAL M4 49