GR 850 FLASH
EN CLAIR
Ri
_HKK 121/616 | |
1-PA
PA..
12/12
370
FM4 BRUSSELS 291314Z NOV (FOLLOWING FROM HONG KONG GOVT OFFICE)
UNCLASSIFIED
TO FLASH GOVERNOR HONG KONG TELNO 002 OF 29 NOVEMBER 1977 INFO FLASH FCO, HONG KONG GOVERNMENT OFFICE LONDON (FCO PLEASE PASS)
FROM JORDAN, HONG KONG GOVERNMENT OFFICE.
1. I HAVE TO REPORT A SERIOUS SETBACK IN THE NEGOTIATIONS. BECK AND MILLS AGREED YESTERDAY (MONDAY 28 NOVEMBER) THAT THE INFORMAL NEGOTIATIONS HAD REACHED A POINT SUFFICIENTLY ADVANCED TO ENABLE BOTH SIDES TO SHOW IN FORMAL SESSION THE CONSIDERABLE PROGRESS THAT HAS BEEN MADE. SO FAR AS 'NUMBERS' ARE CONCERNED, THE AIM OF THE INFORMAL SESSIONS HAD BEEN TO PRODUCE A PACKAGE THAT COULD BE AGREED AND PRESENTED COMPLETE. ON 36 OF THE 41 CATEGORIES WE HAD BEEN ABLE TO REACH INFORMAL AGREEMENT ON THE COMMUNITY LIMIT PROVIDED THAT MS LIMITS WITHIN THEM ARE BASED ON THE PATTERN OF EXPORT TRADE. ON THE REMAINING CATEGORIES WE HAD REACHED AN UNDERSTANDING ON THE FIGURES THAT THE COMMUNITY WOULD PRESENT.
2.
THE FIRST FORMAL SESSION SINCE CUR RETURN TO BRUSSELS WAS THEREFORE SCHEDULED FOR 1730 HRS. MONDAY 28 NOVEMBER. MILLS HAD AGREED WITH BECK THAT THIS SESSION WOULD BE CONFINED TO A PRESENTATION OF POSITIONS REACHED ON THE LIMITS TO BE APPLIED IN
1978.
3.
SHORTLY BEFORE THE SESSION BEGAN BECK TOLD MILLS THAT, IN ADDITION TO THE LIMIT ON CATEGORY 2 COTTON FABRICS AND CATEGORY 3 SYNTHETIC FABRICS (THE LIMIT OF 13,000 TONS ON CATEGORY 2 COTTON FABRICS WOULD HAVE TO BE IMPOSED ON HONG KONG BECAUSE OUR POSITION THAT WE REFUSE TO NEGOTIATE BELOW 1976 LEVELS OF TRADE MUST BE MAINTAINED), THE COMMUNITY ALSO REQUIRED SUB-LIMITS ON BOTH CATEGORIES IN RESPECT OF FINISHED FABRICS, JE. OTHER THAN GREY AND BLEACHED, WITH THESE SUB-LIMITS BASED ON THE IMPORT PATTERN OF TRADE. THIS RE-OPENING OF THE PACKAGE CAME AS A COMPLETE SURPRISE TO THE HONG KONG TEAM WHICH, NEVERTHELESS, HAVING AGREED EARLIER
WITH.