Brief No 4

LINE TO TAKE

1 The present arrangements under the MFA provide for continued growth of

Hong Kong's exports and assure her position as our largest single supplier

of textiles.

2 However Hong Kong must be aware of our commitments under the MA to other

low-cost suppliers; and that we must take account of the views of our EEC

partners in formulating trade policy.

3

Hong Kong has been particularly well-organised and honest in implementing

her side of the EEC-Hong Kong bilateral agreement. Pleased to note energetic

action by Hong Kong authorities on origin fraud.

4 The UK fully supports the present MFA and the bilateral agreements and

expects the provisions to be implemented fairly by all parties. We would hope

that the MFA and the bilateral agreements will be succeeded by further orderly

marketing arrangements.

(This line can also be taken with the press).

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