CONFIDENTIAL
LORD BELSTEAD'S VISIT TO HONG KONG : 6 TO 10 DECEMBER 1982
BRIEF NO.5 : MULTI-FIBRE ARRANGEMENT (MFA)
POINTS TO MAKE
1.
Glad that Hong Kong and EC Commission finally managed to
conclude negotiations on a new bilateral textile agreement on 30
November. Appreciate contribution made by Hong Kong to bring
about mutually acceptable outcome.
2.
·
In no doubt about importance of textile and clothing
industry to Hong Kong economy and extent of Hong Kong share in
world trade.
3.
British Government consistently urged Hong Kong's case as
a territory free of tariffs on the rest of EC. Achieved some
limited success in softening position for opening rounds of
negotiations. Also instrumental in November in ensuring that
Commission were given flexibility they sought in order to
conclude negotiations.
4.
Not an easy line for British Government to take in view
of difficulties facing textile sector in UK. Over 170,000 jobs
lost since the beginning of 1980. But conscious of our
special responsibility for Hong Kong.
5.
Doubt whether result will be regarded as entirely
satisfactory in either Hong Kong or UK. But important that exceptional difficulties associated with international trade in
textiles should be resolved through a process of negotiation and
agreement.
6.
[DEFENSIVE] (If it is argued that in volume-terms
cut-backs are greater for the UK than for other EC Member
States) In so far as this is true it is because UK quotas are
larger than other Member States. The percentage cut-backs are
virtually identical in each case.
CONFIDENTIAL