XN000022-1977-11-10 — Page 2

THURSDAY, NOVEMBER 10, 1977

HK READY TO RESUME TEXTILE TALKS WITH EEC

***

HONG KONG IS READY TO RESUME TALKS WITH THE EEC ON THE TEXTILE AGREEMENT THE MOMENT IT SEEMS ANY PROGRESS CAN BE MADE, THE ACTING DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS, THE HON. BILL DORWARD SAID TODAY.

SPEAKING AT THE LEGISLATIVE COUNCIL'S ANNUAL POLICY DEBATE, MR. DORWARD SAID HONG KONG MADE A LOT OF CONCESSIONS IN THE

INDEFINITELY SUSPENDED TALKS WHICH WERE REJECTED SOLELY ON THE GROUNDS OF CUR REFUSAL TO AGREE TO ADDITIONAL CUTBACKS, AND THE REFUSAL THAT EEC HAD THE RIGHT TO MAKE AN ARBITRARY REDISTRIBUTION OF OUR TRADE TO OTHER SUPPLIERS.

THESE CONCESSIONS INCLUDE:

*

*

*

THE ACCEPTANCE, AS LIKITS FOR 1970, OF THE LEVEL OF EEC IMPORTS IN 1976 IN MOST SENSITIVE CATEGORIES IN WHICH HONG KONG IS A DOMINANT SUPPLIER, DESPITE THE FACT THAT IT IS A MAJOR DEPARTURE FROM THE PRINCIPLE IN THE MULTI-FIBRE ARRANGEMENT THAT QUOTAS SHOULD NEVER BE SET AT LESS THAN THE QUOTA LIMITS FOR THE PREVIOUS YEAR=

THE ACCEPTANCE OF THE EEC PROPOSAL OF A FIVE-YEAR AGREEMENT DESPITE ITS DISADVANTAGEOUS NATURE=

THE ACCEPTANCE OF THE EEC PROPOSALS ON GROWTH RATES, ALTHOUGH SOME WERE VERY LOW- ESPECIALLY BEAR ING IN MIND THE 1976 BASE- AND

* HONG KONG'S OFFER TO PRINS UNDER SURVEILLANCE ALL THE

PRODUCTS THE COMMUNITY WANTED UNDER SURVEILLANCE.

MR. DORWARD SAID DESPITE THE ACCEPTANCE OF SOME VERY UNPALATABLE CONDITIONS, THE EEC ISSUED A PRESS RELEASE ON NOVEMBER 8 IN WHICH THEY INDICATED THAT THEIR OFFER MADE ON OCTOBER 26 - IDENTICAL IN ESSENTIAL ELEMENTS TO THAT MADE RIGHT AT THE START AND SLIGHTLY WORSE IN SOME OTHER RESPECTS REMAINED ON THE TAELE FOR THE MOMENT.

+

+BUT THAT AS FAR AS THEY WERE CONCERNED THE NEGOTIATIONS WERE SUSPENDED INDEFINITELY. THIS STATEMENT WAS MADE WITHOUT OUR KNOWLEDGE OR CONCURRENCE, HE ADDED,

+THIS IS EFFECTIVELY WHERE THE MATTERS STAND. AS OF THIS MOMENT OUR DELEGATION IS HAVING A WELL EARNED DAY OFF IN EUROPE AND, DEPENDING ON CERTAIN COMMUNICATIONS WHICH MAY BE RECEIVED WITHIN A MATTER OF HOURS, IT IS PROBABLE THEY WILL RETURN TO HONG KONG IN A DAY OR TWO.

+ IF AND WHEN THEY DO, HOWEVER, THIS WILL NOT REPRESENT A BREAK OFF ON CUR PART,+ HE REMARKED.

/HE NOTED