TNAG-0149-FCO40-185-Cotton-textiles-to-France-1969 — Page 24

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CYPHER/CAT A

CONFIDENTIAL

IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE

TELEGRAM NO 140

TOP COPY

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TO UKMIS GENEVA

28 APRIL 1969

(HKD 6/312/1)

CONFIDENTIAL. NEUTRAL/

ADDRESSED TO UKMIS GENEVA TELEGRAM NO 140 OF 28 APRIL REPEATED

FOR INFORMATION TO HONG KONG.

FOR JONES.

SAVING TELEGRAM NO 57 TO JONES' REPORT TO HONG KONG OF

18 APRIL: FRENCH IMPORT RESTRICTIONS,

FURTHER TO MY TELEGRAM NO 139.

YOUR TACTICS IN THE RESIDUAL RESTRICTIONS GROUP WERE CLEARLY

WELL CHOSEN SINCE THE FRENCH HAVE RESPONDED IN A REASONABLY

SATISFACTORY WAY. IN PARTICULAR IT IS NOTEWORTHY THAT THEY NEITHER ATTEMPTED TO DENY THAT HONG KONG POSSESSED GATT RIGHTS, AS COLLIN APPEARED TO AT THE TALKS IN HONG KONG, NOR DENIED THE STATUS OF HONG KONG AS A DEVELOPING COUNTRY IMPLIED BY YOUR

RAISING THE SUBJECT IN AN ORGAN OF THE CTD,

2. THE EXAMINATION OF NON-TARIFF BARRIERS IN THE IPC IS IN PART AN EXERCISE OF CONFRONTATION AND JUSTIFICATION, AND IT IS THEREFORE APPROPRIATE THAT WE SHOULD CONTINUE TO PRESS THE FRENCH IN THAT

FORUM ON THE SUBJECT OF HONG KONG RESTRICTIONS. HAVING NOTIFIED THE RESTRICTIONS, ALBEIT IN GENERAL TERMS, WE SHOULD APPEAR TO BE BACKING DOWN IF WE DID NOT KEEP UP THE PRESSURE. SUBJECT TO HONG

KONG'S APPROVAL WE THEREFORE AGREE THAT YOU SHOULD DEAL WITH THE

MATTER ON THE LINES YOU SUGGEST IN PARA 16 OF THE REPORT TO HONG

KONG, ADOPTING THE REASONABLE TONE USED IN THE RESIDUAL RESTRICTIONS

GROUP.

3. WE SHOULD HOWEVER BE CAREFUL NOT TO RAISE THE TEMPERATURE. IT, MIGHT THEREFORE BE MORE SUITABLE FOR YOU TO PUT THE POINTS OF

INCOMPATIBILITY WITH GATT IN AN INTERROGATIVE MANNER RATHER THAN BY SIMPLY DECLARING THE FRENCH IN BREACH OF VARIOUS GATT ARTICLES.

WE WOULD OF COURSE NOT WISH TO REFER TO FRANCE AS BEING IN BREACH

OF PART IV.

14.

REAT

NF.

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CONFIDENTIAL