1

CONFIDENTIAL

(In Peking only)

6.

China not regarded by EC as dominant supplier.

(In Seoul only)

7.

Welcome willingness of South Korea to join Hong

Kong in agreeing to bilateral contacts with Commission

about "adjustments to quotas" [euphemism for cutbacks].

(If asked about compensation in OP). Possibility of

compensation has been kept open. Extent remains to be

decided.

1

CONFIDENTIAL

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