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GUIDANCE TELNO 213 WAS MADE BY THE COMMUNITY WITH THE FULL SUPPORT OF UK MINISTERS. THE INTENTION IS TO PROTECT DOMESTIC INDUSTRY AND TO ALLOW SOME GROWTH TO NEW AND POOR EXPORTERS. THERE IS NO INTENTION TO DISCRIMINATE AGAINST HONG KONG BUT, IF THIS POLICY TO SUCCEED, THE SUPER COMPETITIVE NATIONS, OF WHICH HONG KONG IS ONE, MUST ACCEPT A CUT IN QUOTAS.

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7. HONG KONG IS RECOGNISED AS AN EXTREMELY ASTUTE NEGOTIATOR AND PUBLIC PRONOUNCEMENTS ON THE LIKELY EFFECT OF THE PROPOSALS, TO WHICH YOU ARE EXPOSED AND WHICH WE BELIEVE TO BE EXAGGERATED, ARE PART OF THE NEGOTIATING TECHNIQUE. THERE IS EQUALLY STRONG POLITICAL SUPPORT IN THE UK IN FAVOUR OF THE PROPOSALS, INDEED, IN A RECENT COMMONS DEBATE HONG KONG GOT NO SUPPORT AT ALL.

OWEN

FILES. HK&GD. MR POSNETT

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