MR CLIFT'S VISIT TO HONG KONG:
CONFIDENTIAL
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NOVEMBER 1980
(77
MEETING WITH MR BILL DORWARD, DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS
Background
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1. The original Multi-Fibre Arrangement, signed in 1974, was designed
to provide a framework for textile agreements between importers and
exporters. The intention was to allow the exporters (mainly develop-
ing countries) steadily growing access to markets whilst protecting
the developed markets against disruption by a flood of low-cost
textile imports. The MFA set out conditions for any resultant
bilateral textile agreements. It also established the Textiles
Surveillance Body to monitor such agreements.
2. The MFA was due for renewal in 1977. Hong Kong, though disappoin-
ted by the factionalism of the TSB, wanted no substantial changes.
The importers, led by the EC, were seeking to include stronger
measures against market disruption, and also the principle of global
ceilings (collective quotas for imports from all countries).
French and the EC Commission also wished to favour the poorest
exporters at the expense of the richer ones (Hong Kong, Taiwan and
South Korea).
3.
The
The final result was that Hong Kong signed a strict Bilateral
Agreement with the EC, and the MFA was renewed with only one addition.
This was a clause allowing 'jointly agreed reasonable departures' from
the MFA if circumstances demanded it. These departures were to be as
temporary as possible.
The 1981 Negotiations
4.
The MFA is due for renewal in December 1981, although most EC
Bilaterals last until 1982. The importers will want to curtail quotas
even more. HMG is under strong pressure from the textile industry to
CONFIDENTIAL
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