MONDAY, OVE
القرا
3
DESPITE THE HONG KONG RESPONSE, THE COMMUNITY COMPLETED ITS PRESENTATION TO HONG KONG AS TO THE TYPE OF RESTRAINTS THAT IT WAS SEEKING. THIS INCLUDED NOMINAL GROWTH RATES - 0.1 PER CENT IN SOME CASES, THE SUSPENSION OF FLEXIBILITY PROVISIONS FOR SOME CATEGORIES AND VERY LOW PERCENTAGES IN OTHERS. THE FLEXIBILITY PROVISIONS WOULD BE TIGHTLY CONTROLLED AND COULD ONLY BE USED FOLLOWING CONSULTATIONS BETWEEN HONG KONG AND THE EEC.
THE HONG KONG DELEGATION MADE CLEAR THAT THESE TERMS WOULD BE UNACCEPTABLE TO HONG KONG ALSO.
AS SOMETHING OF AN IMPASSE HAD BEEN REACHED THE TWO SIDES AGREED TO LOOK AT SOME OTHER ISSUES WHICH WERE OF JOINT OR INDIVIDUAL CONCERN TO THE TWO SIDES.
THE EEC PROPOSED AN ANTI-SURGE MECHANISM. THIS HONG KONG REJECTED ON THE GROUNDS THAT IT RESULTED IN CUTBACKS ON BASE LEVELS WHICH WERE CONTRARY TO THE MFA AND WAS IRRELEVANT, GIVEN THE HIGH UTILISATION RATES OF HONG KONG'S QUOTAS. FURTHERMORE, THE COMMUNITY PROPOSALS ENVISAGED THE EEC HAVING THE UNILATERAL RIGHT TO IMPOSE A LOWER LIMIT IF HONG KONG FAILED. IN CONSULTATIONS, TO AGREE THAT SUCH A MECHANISM SHOULD BE INVOKED. HONG KONG COULD NOT ACCEPT THIS.
THE EEC ALSO PROPOSED A STRICT CLAUSE DEALING WITH FRAUDULENT IMPORTS WHICH CIRCUMVENTED THE HONG KONG EXPORT CONTROL SYSTEM. THERE WAS A CONSIDERABLE IDENTITY OF VIEW ON THIS CLAUSE, THE ONLY DIFFICULTY BEING THAT THE EEC WAS INSISTING ON A UNILATERAL POWER TO DEBIT HONG KONG QUOTAS WITH ANY FRAUDULENT SHIPMENTS IT DISCOVERED.
HONG KONG REJECTED THIS ON THE GROUNDS THAT FRAUDULENT SHIPMENTS WERE NOT ONLY A CONSEQUENCE OF THE WRONG DOINGS OF EXPORTERS/MANUFACTURERS IN HONG KONG BUT FREQUENTLY INSTIGATED BY TRADERS AT THE IMPORT END OF THE TRADE AND SOMETIMES BY TRADERS IN THIRD COUNTRIES. FURTHERMORE UNILATERAL ADJUSTMENT OF QUOTAS WOULD PUNISH THE INNOCENT AND DID NOTHING TO GET AT THE REAL HEART OF THE MATTER WHICH WAS TO MAKE THE CONTROL SYSTEM AS FOOL-PROOF AS POSSIBLE AND BRING WRONG-DOERS TO JUSTICE.
THERE WAS ALSO SOME DISCUSSION OF AND A MEASURE OF AGREEMENT ON SOME OF THE MORE TECHNICAL DETAILS WHICH WOULD HAVE TO SE INCLUDED IN ANY NEW AGREEMENT. THE EXISTENCE OF SIGNIFICANT DIFFERENCES BETWEEN THE TWO SIDES WAS RECOGNISED HOWEVER, AND IT WAS AGREED THAT THE CONSULTATIONS SHOULD BE ADJOURNED TO ALLOW BOTH SIDES TO RE-EXAMINE THEIR INSTRUCTIONS.
THE TWO SIDES AGREED TO RESUME CONSULTATIONS IN BRUSSELS ON SEPTEMBER 13. THE POSSIBILITY OF FURTHER DISCUSSIONS ON PURELY TECHNICAL POINTS BEFORE THEN WAS NOT RULED OUT.