Ruccion 1325610 NJ 10/10

Россий

... M. Stewart HK DIPL

M. Jinkeino

Back to me.

Reference

NS

_HKK._ 121 616/1

1 1 NOV 277

(3+1)

PS/SECRETARY OF STATE,

LAST

hi

In Queribell и тар

No

PS/PUSS(T) Mr Gray Mr Gaffin

Mr Abramson Mr Priston Miss, Lowne

PA

CT FCO

the line propasectom is u weak but I have not suggested

Cuy

cellerations

MFA BILATERAL NEGOTIATIONS:

Onates!

HONG KONG

هله

attache Secretary of State should be aware that the BBC intend to

Seg

include a report from Hong Kong in today's "Newsday" programme. The background is set out in the attached mihute from the Press Office, and the Secretary of State will wish to read the summary in paragraph 3 of the line Hong Kong are likely to take.

2

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{

The BBC have asked for an explanation of the UK attitude for inclusion in the report. This is extremely tricky, since the burden of Hong Kong's complaint is not that their exports of Group products are being held to present levels (which they ney say they would accept) but that they are being cut back even though the EEC is not aiming for an overall reduction in imports from all sources. The reasons why Hong Kong comes off so badly are, first, the decision to give special treatment to India (one of the four major suppliers) and second, the need to provide for new suppliers who have at present no share (or only a very small one) in the market for the most sensitive products (to say nothing of the looming problem of Brazil). Both these explanations would be rejected by Hong Kong, and neither is usable in the present context. We cannot even say that all major suppliers are being treated alike. On the other hand the worst possible outcome would be for HMG's case to go by default.

3

We have accordingly prepared the attached draft form of words which attempts to link the tough attitude taken towards Hong Kong with the need to prevent further unemployment in the UK without being too specific about how this objective is being achieved or the burden shared between supplying countries. We have also included a factual reminder that the negotiations are the responsibility of the Commission, on the grounds that this is a point on which viewers' minds could easily become confused. The result is not very satisfactory, but it should be better than nothing. However, we feel we should seek the Secretary of State's agreement to the proposed form of words before it is passed to the BBC.

CODE 18-77

D W HELLINGS

AS/CRE1/3

Room 379 V/S Ext 3311

10 November 1977

Page 30Page 31

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