GR 835
IMMEDIATE
CYPHER/CAT A
FM HONG KONG 181009Z
CONFIDENTIAL
HKK 124/616!,
339
?PA
2941
FNo6 83141
CONFIDENTIAL
TO IMMEDIATE F.C.0 TELNO.1164 OF 18 NOVEMBER.
FOR MR JUDD FROM GOVERNOR.
MY TELNO.1147: EEC/HONG KONG TEXTILES.
332
3+0
1. I HAVE NOW CONSULTED THE TEXTILES ADVISORY BOARD AND THE
EXECUTIVE COUNCIL, BROADLY ON THE BASIS OF OUR EXCHANGES RESTING WITH MY TEL UNDER REF, AND AGAINST THE BACKGROUND OF NEWS FROM
BRUSSELS OF DEVELOPMENTS IN OTHER NEGOTIATIONS: OF MR TRAN'S
CONTINUED USE OF THE PRESS TO CONVEY THREATS: AND OF THE
LIKELIHOOD THAT THE GATT TEXTILES COMMITTEE WILL MEET EARLY IN
DECEMBER.
2. MY ADVISERS CONFIRMED, AS I HAD EXPECTED, THAT WE SHOULD
REMAIN READY TO RESUME NEGOTIATIONS. WE ARE GRATEFUL FOR THE
OFFER THAT THIS MIGHT BE DONE IN HONG KONG AND GLADLY ACCEPT.
3. AS I SAID IN MY TEL UNDER REF, THE COMMISSION HAS YET TO MAKE ANY FORWARD MOVEMENT FROM THEIR OPENING POSITION AND EVEN THE
INDICATION YOU CONVEYED THAT THE EXTENT OF THE PROPOSED CUTBACKS BELOW 1976 IMPORT LEVELS WOULD BE NEGOTIABLE WAS NO MORE THAN THEY HAD ALREADY INDICATED IN THE NEGOTIATIONS: AND THEY HAVE
ALREADY ACKNOWLEDGED THAT OUR OFFER MEETS THE ''STABILISATION''
ASPECTS OF THE MANDATE.
4. SO FAR AS I KNOW THEY HAVE NOT, IN ALL THE MANY STATEMENTS TO THE PRESS THAT TRAN HAS MADE AND CONTINUES TO MAKE, DENIED THIS, BUT THEIR TACTICS SEEM TO BE TO OBSCURE IT. THE FACT IS THAT, WHILE WE MADE A REAL MOVE'' (BECK'S WORDS) WITH OUR PACKAGE, THEIR ONLY MOVES SO FAR HAVE BEEN BACKWARD, IN THAT THEY HAVE REDUCED THEIR ''OFFERS ON TWO CATEGORIES AND
QUALIFIED THEIR EARLIER ASSURANCE ON EXPORT CONTROL AND
AGREEMENT TO WORK ON THE BASIS OF OUR PROPOSED TEXT,
CONFIDENTIAL
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