GR 800
HISK 121/616/1
PA
386
EN CLAIR
FM HONG KONG #50925Z
UNCLASSIFIED
TO ROUTINE F C O TELNO 1228 OF 5 DECEMBER 1977.
MIPT
BEGINS
385
$
THE ACTING DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS,
MR BILL DORWARD, HAS ANNOUNCED THAT HONG KONG AND THE EEC INITIALLED AN AGREEMENT IN BRUSSELS EARLY THIS MORNING RESTRAINING THE EXPORTS OF TEXTILES AND CLOTHING FROM HONG KONG FOR THE
NEXT FIVE YEARS. FULL DETAILS WERE NOT IMMEDIATELY AVAILABLE
BUT ARE EXPECTED SOON.
MR DORWARD SAID THAT THIS WAS THE CULMINATION OF NEGOTIATIONS BEGUN IN MID-OCTOBER AND RECESSED FOR ONLY A
LITTLE OVER ONE WEEK IN EARLY NOVEMBER.
SOURCES CLOSE TO THE DEPARTMENT SAID THAT THE AGREEMENT
IS THE MOST RESTRICTIVE HONG KONG HAS EVER ACCEPTED. IT WAS IN THEORY NEGOTIATED UNDER THE TERMS OF THE GATT MULTI-FIBRE ARRANGEMENT (MFA). BUT, FROM AN EARLY STAGE, INDEED SOME MONTHS BEFORE THE NEGOTIATIONS PROPER BEGAN, THE EEC PUBLICLY MADE IT CLEAR THAT THEY HAD NO INTENTION OF ACKNOWLEDGING OBLIGATIONS UNDER THE MFA WHICH DID NOT SUIT
THEIR INCREASINGLY PROTECTIONIST POLICIES.
THE SOURCES ADDED THAT THE COURSE OF THE NEGOTIATIONS WAS
MARKED BY FREQUENT PUBLIC THREATS BY EEC NEGOTIATORS AIMED AT
INTIMIDATING HONG KONG AND OTHER EXPORTERS WHO SOUGHT NO MORE
THAN THEIR FREELY NEGOTIATED RIGHTS UNDER THE MFA.
/COMMENTING ON