TNAG-0237-FCO40-273-Trade-relations-between-EEC-and-Hong-Kong-1990 — Page 92

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CYPHER/CAT A

38

PRIORITY UKDEL E.E.C. BRUSSELS TO FOREIGN AND COMMONWEALTH OFFICE PRIORITY UKDEL E.E.C. BRUSSELS TEL. NO. 5 TO HONG KONG 24 MARCH 1970 CONFIDENTIAL [NEUTRAL]

ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NO. 5 OF 24 MARCH REPEATED

FOR INFORMATION TO FOREIGN AND COMMONWEALTH OFFICE, UKMIS GENEVA

(FOR JONES), BONN AND SAVING TO BRUSSELS (FOR DODGE), PARIS,

THE HAGUE, ROME AND LUXEMBOURG.

READ IN REGISTRY No.51

EEC/HONG KONG COTTON TEXTILES TALKS.

HIC

116/6

SECOND ROUND OF CONSULTATIONS BETWEEN COMMISSION AND HONG

KONG OFFICIALS WAS HELD ON 23 MARCH.

2.

IN THE COURSE OF A HARD, BUT AMICABLE, CONFRONTATION ERNST

MADE THE FOLLOWING OFFER, WHICH, IN CONRAST TO THE PREVIOUS ROUND

WAS A FORMAL ONE, IN THE CONTEXT OF EXTENSION OF LTA FOR A FURTHER

THREE YEARS.

(1) AN ARTICLE 4 AGREEMENT WITH WHOLE COMMUNITY COVERING

YEARS 1971/3 AND WITHIN FRAMEWORK OF EEC ''MODEL

(2)

(3)

i

AGREEMENT'':

COVERAGE ALL COTTON TEXTILES EXCEPT YARNS:

BASE TO BE HONG KONG'S ACTUAL EXPORTS IN 1969 (11,986

METRIC TONS) WITH GROWTH OF 3% P.A. EXPRESSED AS A FLAT

AVERAGE FIGURE OVER WHOLE THREE YEARS 6% HIGHER THAN

BASE: THUS INDICATING THAT ERNST HAS ABANDONED HIS

PREVIOUS EXAGGERATED 1969 ESTIMATES:

(4)

OVERALL QUOTA TO BE DIVIDED INTO SUB-QUOTAS FOR

(5)

INDIVIDUAL MEMBER STATES:

CATEGORISATION WITHIN 34 CATEGORIES IN MODEL AGREEMENT

TO BE NEGOTIATED BUT TO BE UNIFORM FOR EXPPORTS TO ALL

MEMBER STATES:

(5) 10% CARRYOVER AND 5% ANTICIPATION:

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