CONFIDENTIAL
GR 363
IMMEDIATE
CYPHER/CAT A
FM UKREP BRUSSELS 081335Z
CONFIDENTIAL
HKK 121/616/1
RELEIVED IN REGJERY
- 9 NOV D17
OFSK OFFICER
INDEX
No
PA
-crop Take-
T
TO INMEDIATE FCO TELEGRAM NUMBER 6631 OF 8 NOVEMBER
TEXTILES: NEGOTIATIONS WITH HONG KONG
MY TELNO 6627
ра
(249)
(300)
1. AS AGREED IN TELECON STERN/ELLIOTT, WE LATER CONTACTED TRAN AGAIN TO CONFIRM THAT HE WAS STILL WILLING, IF HONG KONG RETURNED TO THE NEGOTIATING TABLE, TO DEPLOY SOME OF THE RESERVES SET ASIDE FOR DOMINANT SUPPLIERS IN FAVOUR OF HONG KONG. TRAN AGREED STRAIGHTAWAY ADDING THAT HE HAD ALREADY ANNOUNCED FUBLICLY (PRESUMABLY AT HIS PRESS CONFERENCE ON 4 NOVEMBER) THAT THE COMMUNITY WAS PREPARED TO OFFER FURTHER QUANTITIES TO HONG KONG ON THREE PRODUCTS.
2. ELLIOTT ACCORDINGLY TELEPHONED BURGESS IN THE HONG KONG OFFICE. HE SAID THAT HE HOPED THE HONG KONG SIDE, WHICH HAD NOW RECEIVED A FULL SET OF COMMUNITY FIGURES BROKEN DOWN BY MEMBER STATES, WOULD FIND IT POSSIBLE TO ACCEPT THE COMMUNITY'S PRODUCT CLASSIFICATION
SYSTEM - DESPITE THE ACKNOWLEDGED DIFFICULTIES THIS POSED FOR HONG KING, HE ALSO HOPED THAT, TO AVOID THE THREATENED BREAKDOWN (WHICH STILL SEEMED IMMINENT IN TRAN'S EYES), HONG KONG WOULD BE ABLE TO RESUME TALKS WITH THE COMMUNITY ON THE BASIS OF THE LATTER'S FIG-
URES. IN THAT EVENT WE HAD EVERY REASON TO BELIEVE THAT THE PUBLIC
ASSURANCES ALREADY GIVEN TO HONG KONG ABOUT FLEXIBILITY ON A NUMBER
OF KEY PRODUCTS WOULD BE HONOURED.
3. BURGESS SAID THAT HE WOULD INFORM MILLS OF THESE DEVELOPMENTS
IMMEDIATELY, BUT COULD OFFER NO PREDICTIONS ABOUT THEIR RESPONSE.
CONFIDENTIAL
/4. ELLIOTT THEN