CONFIDENTIAL
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Unofficials on the need to emphasise their 'British' status
had been revived by the Gibraltar amendment and there would
undoubtedly be pressure for some form of concession if the
amendment were not reversed. Mr Raison was not optimistic
about the prospects for such concessions and took the line
that if the Gibraltar amendment stood, this would be a matter
of straight policity reality and that it would be up to HMG
to ensure that this was understood in Hong Kong.
MULTI-FIBRE ARRANGEMENT
5.
Multi-Fibre Arrangement (MFA) provides framework for
regulating international trade in textiles. It is due for
renewal at end of 1981. Strong pressure by developed countries
for some tightening of restraints on their imports under MFA.
6. Hong Kong is a dominant supplier of low-cost textiles.
Bilateral agreement under the MFA between EC and Hong Kong
expires at end of 1982.
7. In 1978, EC cut back Hong Kong's quotas to below 1977
Hong Kong hostile to any suggestion of repetition of
these cutbacks. Governor and senior Hong Kong officials have
level.
discussed with UK Ministers and officials.
partners on EC mandate are now in progress.
8.
(Not for disclosure)
Discussions with
Ministers have endorsed DOT view
that, while trying to keep Hong Kong down to very low or even
nil growth rates on present quotas, UK should resist pressure
within EC to impose further cutbacks on the Territory. Present
indications are that this would in the last resort be acceptable
to Hong Kong.
CONFIDENTIAL
/Hongkong