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KONG, 1.5. FOR SEVEN OF THE HIGHLY SENSITIVE" ITEMS. THIS ALONE
?
L PROBABLY HAVE IMMEDIATE REPERCUSSIONS FOR OUR OTHER PENDING
NEGOTIATIONS (NORWAY, SWEDEN AND CANADA ALL SEEK TO RENEGOTIATE WITH US ON HISTORICAL LEVELS OF TRADE). WE CAN ONLY HOPE THAT
IT WILL NOT SPARK THE AMERICANS TOO.
**
10. IF THE COMMUNITY WERE TO REJECT THIS GENUINELY CONSTRUCTIVE
APPROACH BY HONG KONG, THEY COULD DO SO ONLY ON THE BASIS THAT THEY WERE DEMANDING FURTHER **SACRIFICES OF HONG KONG, 1.E. ASK HONG KONG TO CONCUR IN THE GIFT OF A PART OF OUR TRADE, WHICH HAS BEEN UNDER RESTRAINT OVER THE PAST 13 YEARS, TO OTHERS (WHO, FOR THE MOST PART, HAVE HAD UNFETTERED ACCESS). SOME OF THOSE WHO, WHILE UNRESTRICTED, HAVE BEEN ABLE TO EXPORT ONLY RELATIVELY SMALL QUANTITIES WILL NOT HAVE THE CAPACITY TO MANUFACTURE AND EXPORT DESPITE BEING GIVEN QUOTAS LARGER THAN THEIR CURRENT TRADE LEVELS. BUT THE DEMAND WOULD STILL BE THERE, AND LIKELY TO BE MET, THEREFORE, BY OTHER DEEVVELOPED COUNTRY SUPPLIERS. SO, THE COMMUNITY, IN SEEKING TO BENEFIT THE FOOREST BY TAKING AWAY FROM US, IS LIKELY TO BENEFIT ONLY THE RICH.
11. IF THIS WERE TO HAPPEN, PARTICULARLY FOLLOWING TRAN'S PRESS CONFERENCE, WE SHOULD BE COMPELLED TO SAY PUBLICLY THAT THE EEC WAS NOT NEGOTIATING AT ALL BUT SEEKING TO IMPOSE, BY DURESS, EXTREME AND UNJUSTIFIABLE DEMANDS. AND WE SHOULD HAVE TO MAKE PUBLIC THE LENGTHS TO WHICH WE HAVE GONE TO MEET THESE DEMANDS.
12. THE PROSPECT OF THE ANTI-EEC, INCLUDING ANTI-UK, BACKLASH THAT THIS WOULD PRODUCE IS AWKWARD ENOUGH, ESPECIALLY GIVEN THE UNHELPFUL PRECEDENT FOR OUR PENDING NEGOTIATIONS AND THE RISK OF A US REACTION. BUT THERE WOULD BE WIDER CONSEQUENCES TOO: THE IMPOSITION OF THESE RESTRAINTS WOULD INEVITABLY MEAN THAT THE MFA WOULD BE A DEAD LETTER, IF IT WERE EXTENDED AT ALL. WHILE THAT, IN ITSELF, MAY BE OF LITTLE CONCERN TO THE COMMUNITY, EXTREME RESTRICTIONS ON TEXTILE EXPORTS TO THE EEC WILL LEAD TO PRESSURE FOR SIMILAR RESTRICTIONS IN THE US. IF THE US TEXTILE INDUSTRY GETS WHAT IT WANTS, OTHER US INDUSTRIES, AND STEEL WILL PROBABLY BE THE FIRST, WILL DEMAND GREATER PROTECTION WITH EVEN MORE VEHEMENCE THAT THEY ARE DOING ALREADY. SO IT WOULD NOT ONLY
BE HONG KONG'S TEXTILE EXPORTS WHICH ARE AFFECTED.
MACLEHOSE
FILE S
HK & GD
EID
(5)
MR HIBBERT
MR FRETWELL
3
COPIES TO
Stein is or doing diett FICENTRly. перви
HONG KONG GOVERNMENT OFFICE
6 GRAFTON STREET, W1
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