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PRIORITY
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CONFIDENTIAL
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AKK 121/66/, CA
2 F
FM UKMIS GENEVA 271022Z ·
CONFIDENT I AL
TO PRIORITY HONG KONG TELNO 17 OF 27 OCTOBER
INFO PRIORITY WASHINGTON (FOR CRWSON), BRUSSELS (FOR BURGESS), HK GOVERNMENT OFFICE LONDON.
FROM TSAO
FUTURE OF THE MEA AND THE MTN.
1. AT THE MEETING YESTERDAY (FULL REPORT FOLLOWS BY MEMO) CALLED BY THE US TO DISCUSS THEIR DRAFT SAFEGUARD CODE WITH A GROUP OF DEVELOPING COUNTRIES, THE LINK BETWEEN THE FUTURE OF THE MFA AND THAT OF THE MTN WAS DISCUSSED AT SOME LENGTH.
2.
IT WAS GENERALLY AGREED:
(A) THAT NEGOTIATIONS IN THE SAFEGUARDS GROUP TO DATE, AND THE US DRAFT CODE, HAVE PROCEEDED ON THE ASSUMPTION THAT TEXTILES
WOULD BE DEALT WITH SEPARATELY:
(B) THE QR SUB-GROUP HAS PROCEEDED ON THE SAME BASIS AND
HAS NOT CONSIDERED HOW TO DEAL WITH TEXTILE
RS:
(C) THAT THERE CAN BE NO REAL PROGRESS IN THE TARIFFS
GROUP WITHOUT PROGRESS ON SAFEGUARDS (THIS IS ACCEPTED BY EVERYONE INVOLVED IN THE MTN).
3.
ALL PRESENT DREW THE INEVITABLE CONCLUSION:
(A) THESE THREE MAJOR AREAS OF THE MTN WOULD BE COMPLETELY
DISRUPTED IF THE MFA FAILED:
(B) THUS THE MTN WOULD BE LIKELY TO COLLAPSE.
FCO PASS TO HK GOVERNMENT OFFICE LONDON.
BOTTOMLEY
FILES
TREO
ECON D
HK & GD EID
MR THOMAS MR HAYES
COPIES TO
HONG KONG GOVT OFFICE LONDON
CONFIDENTIAL