TNAG-0237-FCO40-273-Trade-relations-between-EEC-and-Hong-Kong-1990 — Page 133

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PROVIDED BY HONG KONG OFFICIALS, WHICH HE HAD NOW RECEIVED, THE NEGOTIATING BASIS AGREED. BY THE COUNCIL WOULD REPRESENT A GROWTH OF 5% PER ANNUM DURING THE LIFE OF THE RENEWED AGREEMENT. MOHLER COMMENTED THAT HE HAD NOT SEEN THE FIGURES PRODUCED BY HONG KONG OFFICIALS, ACCORDINGLY HE HAD NOTHING BUT ERNST'S WORD FOR IT THAT ERNST'S CALCULATION WAS CORRECT. BUT IF IT WAERE TRUE, IT REPRESENTED THE LIMIT OF WHAT EVEN THE GERMANS WERE PREPARED TO GO TO FOR HONG KONG.

4. THE MAIN UNCERTAINTY IN THE COMMUNITY POSITION, WHICH AFFECTS ALL THE BILATERAL DISCUSSIONS WHICH THE COMMISSION WILL HOLD, IS THAT THE GERMANS ARE STILL INSISTING THAT THEY SHOULD NOT BE ASKED TO RESTRICT ANY ITEMS FOR WHICH THEY HAVE ALREADY LIBERALISED THEIR IMPORTS: AND THIS IS THE POINT AROUND WHICH SUBSEQUENT DISCUSSIONS IN THE SPECIAL COMMITTEE AND, PERHAPS, IN THE COUNCIL WILL REVOLVE.

FCO PLEASE PASS PRIORITY UKMIS GENEVA (FOR JONES) AND HONG KONG AND BONN, THE HAGUE, LUXEMBOURG, PARIS, ROME, WASHINGTON (FOR HERMANN) AND TOKYO.

1

PASSED SAVING TO BRUSSELS (FOR DODGE).

MR. CHRISTOFAS

[REPEATED AS REQUESTED]

INTERNATIONAL TRADE DISTRIBUTION:

COMMODITIES D.

HONG KONG D. W.EUR.D.

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DDDDD

CONFIDENTIAL

ADDITIONAL DISTRIBUTION:

HONG KONG INTERNATIONAL

TRADE.