SATURDAY, NOVEMBER 12, 1977
+FIRST, AS WE HAD ALREADY BEEN LET TO ANTICIPATE,
THE EEC IDEA OF DISCRIMINATING AGAINST A FEW MAJOR SUPPLIERS, INCLUDING HONG KONG, TO CUT QUOTAS BACK EVEN MORE SEVERELY THAN IN THE CASE OF OTHERS. THIS WAS SO THAT THESE QUANTITIES
COULD BE ALLOCATED TO OTHER SUPPLIERS.
+SECONDLY, THE BASIC DRAFT AGREEMENT PRODUCED BY THE EEC PROVIDED FOR A SYSTEM OF IMPORT CONTROL WHICH, IF IMPLEMENTED, WOULD MEAN LOWER PRICES FOR EXPORTERS AND HIGHER PROFITS FOR IMPORTERS.
+THIRDLY, THE COMMUNITY HAD EVOLVED A SYSTEM
OF CATEGORISATION AND CLASSIFICATION (BASED ON THEIR STILL UNPUBLISHED CUSTOMS CLASSIFICATION FOR 1978) WHICH WOULD WITHOUT DOUBT, CAUSE APPALLING DISRUPTION TO THE TRADE AT BOTH ENDS AND HAVE THE EFFECT OF REDUCING ACTUAL EXPORTS STILL FURTHER.
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+ THESE IN THE WORDS OF THE REPRESENTATIVE OF ANOTHER COUNTRY FACED WITH THE EEC'S DEMANDS, WE COULD ONLY REGARD AS RADICAL, NOT REASONABLE, DEPARTURES FROM THE MFA AND AS SUCH QUITE UNJUST IF IED.
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+THE EEC TRIED TO PRESENT AS MEANINGFUL CONCESSIONS THE RIGHT TO EXPORT CONTROL - ALTHOUGH THERE IS NOT, I BELIEVE, A SINGLE AGREEMENT UNDER THE MFA THAT PROVIDE FOR IMPORT CONTROL AND SO-CALLED 'SECURITY', WHICH MEANT AN UNDERTAKING TO ABIDE BY AN AGREEMENT ENTERED INTO FREELY BY THEM. THE PRICE FOR THESE 'CONCESSIONS' WAS AGREEMENT TO DISCUSS NOT WHETHER BUT ONLY HOW MUCH OF OUR TRADE SHOULD BE REDISTRIBUTED TO OTHERS.
+AFTER WE HAD, AT THE REQUEST OF THE EEC NEGOTIATOR, RECESSED FOR A WEEK, WE OFFERED ON NOVEMBER 4 A PACKAGE PROPOSAL. THIS WAS DONE BECAUSE IT WAS APPARENT THE NEGOTIATIONS WERE GETTING NOWHERE. THE PROPOSALS WENT A LONG WAY TO MEET THE EEC DEMANDS AND INVOLVED WHAT WERE IN OUR VIEW REASONABLE DEPARTURES FROM THE PROVISIONS OF THE MFA,
+THE COMMUNITY HAS ADMITTED THAT THESE PROPOSALS WERE A REAL MOVE FORWARD BY HONG KONG AND THAT THEY MET THE EEC'S REQUIREMENT THAT IMPORTS SHOULD BE STABILISED AT THE 1976 LEVEL.
+THIS WAS A VERY SUBSTANTIAL CONCESSION BY HONG KONG. IN OUR VIEW IT WAS ON THE VERY EDGE OF WHAT COULD BE CONSIDERED 'REASONABLE DEPARTURES' FROM THE MFA. IT INVOLVED CONSIDERABLE CUTBACKS ON OUR 1977 QUOTA LIMITS. AND IT WAS MADE DESPITE THE FACT THAT THE COMMUNITY HAD NOT, APART FROM VERY GENERAL REMARKS ABOUT THE STATE OF ITS TEXTILE ÎNDUSTRIES AND UNSUPPORTED STATEMENTS THAT PARTICULAR PRODUCTS ARE PARTICULARLY SENSITIVE', PROVIDED ANY OBJECTIVE JUSTIFICATION FOR ANY PARTICULAR RESTRAINT OR LINIT.
+
+OUR PROPOSALS WERE TOTALLY REJECTED BY THE COMMUNITY ON THE SOLE GROUNDS THAT WE HAD NOT OFFERED THE SACRIFICES THAT THE EEC HAD CONTINUALLY SAID IT REQUIRES FROM DOMINANT SUPPLIERS,
/+THIS IS