CONFIDENTIAL ##
機
1
Trade
*(5)
Consultations
with Frai ce on illegal import rE S- trictions
To seek the removal of these restrictions.
Hong Kong holds the view that these import res- trictions are ultra vires the C and have impaired Fong Kong's CATE rights of access. Two rounds of talks with the FFC Commission were held in Vebruary. "hese have led to the de facto or de jure lifting of those restri- ctions in which HK'S exports are insignificant. The Commission has made practically no rovement on those restrictions where FK's exports have been significant (e.g. toys, quartz watches and Kon-ME" clothing).
Kong Kong
is still prepared to tolerate the restrictions for a limited period provided that they vere incorporated in a phased programme of elimination.
A third round of talks began on 5 May, with a view to achieving a tine-bound programme for eliminating the import restrictions. this objective is not reached in the third round of talks, and subject to the risit to HK of 11. Jobert
(French Minister of Trade) at the end of May :
either (a) enter into
further bilateral talks
or
CONFIDENTIAL ##
(b) ask the G Council t form a pane to investig the dispute hetween 4K and France
GF 323