GRS 600
CONFIDENTIAL
FRAME EXTERNAL
CONFIDENTIAL
FROM UKREP BRUSSELS 311842Z MAR 82
TO IMMEDIATE FCO
TELEGRAM NUMBER 1317 OF 31 MARCH 1982
INFO SAVING BONN WASHINGTON UKMIS GENEVA
TEXTILES : HONG KONG
SUMMARY
copy on future file/168)
for Mr. Moris pl.
Hreve 040/1
ник
1 - APP
1. COMMISSION TOLD US OF DORWARD'S CONVERSATIONS HERE. THEY
APPEALED TO US TO REINFORCE THE LINE TAKEN BY THE COMMISSION.
DETAIL
2. KRENZLER (COMMISSION) TOLD US TODAY OF THE
CONVERSATIONS IN BRUSSELS THIS WEEK BETWEEN BILL DORWARD
HONG KONG COMMISSIONER FOR TRADE AND INDUSTRY, AND COMMISSIONERS HAFERKAMP AND DAVIGNON AND SIR R DENMAN (DG 1). THE DISCUSSIONS DID NOT GET INTO THE NEGOTIATING POSITIONS OF THE TWO SIDES, THOUGH THE COMMISSION HAD THE CLEAR IMPRESSION THAT DORWARD WAS FAMILIAR WITH THE COUNCIL'S MANDATE.
Prosty
3. DORWARD EXPLAINED HONG KONG'S DOMESTIC ECONOMIC DIFFICULTIES. INVESTMENT WAS NOW BEING JEOPARDISED BY THE FACT THAT THE EXPIRY OF THE LEASE ON THE NEW TERRITORIES WAS ONLY 15 YEARS AWAY. UNEMPLOYMENT IN HONG KONG WOULD CAUSE AN EXPLOSION. IN THIS SITUATION THE COMMUNITY'S POSITION ON TEXTILES POSED GRAVE DIFFICULTIES.
4. DORWARD COMPLAINED THAT THE ENVISAGED CUTBACKS WOULD PUT HONG KONG BACK TO ITS LEVEL OF TRADE IN 1973 IN THE AFFECTED CATEGORIES, WITHOUT ANY HOPE OF BEING ABLE TO CATCH UP IN FUTURE YEARS. THE COMMUNITY'S HARD LINE HAD ALREADY COST HONG KONG A MORE RESTRICTIVE NEW BILATERAL AGREEMENT WITH THE US THAN WAS NECESSITATED PURELY BY US ECONOMIC CIRCUMSTANCES, SINCE THE AMERICANS HAD FELT OBLIGED TO TOUGHEN THEIR OWN POSITION IN THE LIGHT OF THE COMMUNITY'S. BUT THE US AGREEMENT WAS JUST CONSISTENT WITH THE MFA EXTENSION PROTOCOL, WHICH DORWARD DOUBTED WAS THE CASE WITH THE COMMUNITY'S POSITION.
5. DORWARD SAID THAT HONG KONG WAS NOT INTERESTED ÎN THE COMMUNITY'S PLANS FOR OUTWARD PROCESSING (OP) QUOTAS. MOREOVER, HE THOUGHT THEY WOULD NOT SUCCEED IN SECURING SUBSTANTIAL EXPORTS OF COMMUNITY CLOTH SINCE THE US WERE MAKING INTENSIVE, HIGH LEVEL AND SUCCESSFUL EFFORTS TO SELL THEIR CLOTH IN HONG KONG. BY CONTRAST, THE COMMUNITY WAS MAKING NO EXPORT EFFORT. FURTHERMORE, THE US HAD THREATENED TO RE-OPEN THEIR BILATERAL AGREEMENT IF THE COMMUNITY OBLIGED HONG KONG TO ACCEPT OP QUOTAS.
CONFIDENTIAL
16. ACCORDING
See (140)