CONFIDENTIAL
(111) WHEN ELLIOTT SUGGESTED THAT THE ATMOSPHERE MIGHT HAVE BEEN SOURED BY TRAN'S PRESS CONFERENCE ON 4 NOVEMBER, HE RETORTED
THAT HE HAD INVITED MILLS TO JOIN HIM ON THAT OCCASION BUT HE HAD
DECLINED. WHAT IS MORE HONG KONG HAD EARLIER ACCEPTED 10 NOVEMBER
AS THE DEADLINE FOR AGREEMENT YET WAS NOW ADOPTING A TOTALLY INFLEX-
IBLE ATTITUDE WHICH MADE AGREEMENT BY THAT DATE VIRTUALLY IMPOSSIBLE.
3. IN THESE CIRCUMSTANCES TRAN SAW LITTLE ALTERNATIVE TO A BREAK DOWN TODAY, AFTER WHICH HE WOULD PROPOSE TO CALL AN IMMEDIATE PRESS CON- FERENCE WITH THE AIM OF MAKING CLEAR THAT THE RESPONSIBILITY FOR THE BREAKDOWN DID NOT LIE WITH THE COMMUNITY. HE IMPLIED THAT HE WOULD ALSO IMMEDIATELY OFFER QUANTITIES HITHERTO RESERVED FOR HONG
KONG TO OTHER LOW COST SUPPLIERS.
4. ELLIOTT SUBSEQUENTLY SPOKE TO BURGESS IN THE BRUSSELS HONG KONG OFFICE. SPEAKING ON A PURELY PERSONAL BASIS HE GAVE IT AS HIS VIEW THAT THE NEGOTIATIONS WERE NEARING A CRISIS POINT, WITH A RISK OF BREAKDOWN, AND THAT THE COMMISSION WERE NOT BLUFFING IN THEIR INSISTENCE ON USING THE COMMUNITY'S FIGURES AND ON REACHING AGREE- MENT BEFORE 10 NOVEMBER. BURGESS EXPRESSED GRATITUDE AND UNDERTOOK
TO PASS THESE VIEWS ON TO HIS NEGOTIATORS.
FCO ADVANCE TO BROOMFIELD, STERN EID
CAB
DOI
HARRIS
MISS LOWNE, RIDLEY, FARRY, BROWN DOT GRAY, HELLINGS, MISS MACFARLANE
[ADVANCED AS REQUESTED]
MAITLAND
FRAME EXTERNAL
EID (E)
MR POSNETT
ADDITIONAL DISTRIBUTION FRAME
HK & GD
MR CORTAZZI
2
CONFIDENTIAL
Page 60Page 61