2.

For our part we are doing and will continue to

do all that we can to ensure that the Commission

are prepared to resume negotiations and that in the

course of them the current Community offer is improved.

UKREP Brussels have already spoken to Tran who has

indicated a willingness to resume. Mr Dell is speaking

to Davignon who is in London today, to underline our

opposition to any redistribution of the offer made

to Hong Kong to other suppliers. In my view, the

negotiations should be carried through to a conclusion

as rapidly as possible so that Hong Kong can

negotiate the best terms possible out of the Community

in the next round. But I must tell you that these

will inevitably involve some cutbacks from 1976

sendings for Hong Kong, as they will for other

dominant suppliers. This is the basis of the mandate

agreed collectively by UK Ministers and by Community

Ministers in the Council.

3.

Finally, I think it is essential that when the

final phase of the negotiations with the Community

has been reached and the Community negotiators have

indicated that there is no more give in their position

your negotiators should have clear instructions.

they still have major reservations they should not

break off and publicly characterise the results as

If

unacceptable. They should seek a pause for reflection

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and consultation. We will urge the same course on the Commission.

4.

Before speaking further to the Commission I would

be grateful for your urgent assurances about the

resumption and conduct of the negotiations on the

Hong Kong side.

15.

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