16.
*
Perhaps the present position of the developed countries' position in the EEC market is not as significant in other items. But these figures could be an indication of what would happen once imports from the developing countries were "stabilised" and some of the dominant suppliers' quotas cut back. EEC importers will start looking for alternative sources of supply and they will not be able to find among the
'newcomers' and 'small suppliers the quality and quantity combined of the goods that they have previously imported from Hong Kong and other sources. And so even though some of the developing countries to which the EEC intends to give larger quotas at Hong Kong's and others expense will supply cheaper goods, EEC importers are likely to turn instead to the developed countries whose good: although more expensive will be of a quality acceptable to the European consumer.
•
17.
The second major element of your pro- posals is the concept of "cutbacks".. Hong Kong has doctrinal and practical objections to such cutbacks. To begin with our doctrinal objections. There 48 naturally no provision whatsoever for a cutback in a restraint level in an international arrangement esigned to achieve the expansion of trade, reduction of barriers to trade and pro- gressive-liberalisation of world trade in textile
products.
18.
Hong Kong's present agreement with the EEC was concluded having regard to the MFA and in particular Article 4 thereof. In its Note Verbale 26 September 1977, and in the course of previous interventions, Hong Kong has made clear that it believes that these negotiations are being conduct. under Article 4 of the MFA. Article 4 para 3 provides that "bilateral agreements maintained und this Article shall, on overall terms, including
/base