4.
Textiles
CONFIDENTIAL
1.
The signing of the new bilateral textiles agreement between Hong Kong and the EEC last December caused much criticism of the EEC, and Britain in particular, in Hong Kong. There was some feeling that the UK had "led the pack" against Hong Kong. We have maintained that we acted as only one of a united Community and that the eventual agreement though tough, was the best that could be expected given the difficulties facing the European textile industry, and the need to provide controlled access to the EEC markets from all countries in the developing world.
2.
During the negotiations the Hong Kong Government expressed their fear that other countries would follow the Community's lead in imposing severe reductions in imports from Hong Kong. They made it clear that in such an event Hong Kong would expect full support from HMG. So far, only Norway has made such a move. We have fully complied
with the requests from the Hong Kong Government to support them in making representations in Oslo. As a result, negotiations are to be re-opened between the Norwegians and a Hong Kong delegation in Oslo next month. We stand ready to support the Hong Kong Government's case if
necessary.
CONFIDENTIAL