TNAG-0237-FCO40-273-Trade-relations-between-EEC-and-Hong-Kong-1990 — Page 93

3.

CONFIDENTIAL

-2-

.(7) SWING TO BE :

A) UNLIMITED DOWNSWING FROM SPECIFIC CATEGORIES INTO

BASKETS:

B) 5% SWING BETWEEN SPECIFIC CATEGORIES:

C) POSSIBILITY OF SWING BETWEEN MEMBER STATES' SUB-

QUOTAS TO ENSURE FULLER UTILISATION OF QUOTA:

(8) EXPORT CONTROL WITH DOUBLE CHECKING' AT IMPORT END

(WE ESTABLISHED THIS IMPLIED NO MORE THAN PRESENT BACK

TO BACK LICENSING) BUT WITH SOME DETAILS OF ADMINISTR-

ATION' TO BE DISCUSSED WITH MEMBER STATES.

TO BE DISC

ERNST

CLAIMED THIS WOULD PUSH FRENCH A LONG WAY TOWARDS

ACCEPTANCE OF FULL EXPORT CONTROL.

JONES AND DORWARD COUNTERED ON FOLLOWING LINES:

1) HONG KONG COULD ONLY AGREE AN ARTICLE 4 WHICH WAS FULLY

COMPATIBLE WITH OTHER PROVISIONS OF LTA. TO THIS END

(2) COVERAGE OF EXISTING LIBERALISED TRADE WOULD NEED TO

BE JUSTIFIED ON GROUNDS OF MARKET DISRUPTION. THERE WAS ALSO NO JUSTIFICATION FOR CONTINUING TO RESTRICT FABRICS

(ERNST COUNTERED THAT ALL HONG KONG COTTON TEXTILES EXCEPT

YARN WERE RESTRAINED IN ONE OR MORE MEMBER STATES BUT

PROMISED TO RECONSIDER POSITION ON FABRICS):

3) MINIMUM BASE ON ASSUMPTION OF FULL COVERAGE WOULD NEED TO

BE SUM OF 1970 QUOTAS PLUS 1969 LIBERALISED TRADE PLUS

GROWTH ELEMENT ON LATTER (APPROX. 13,700 TONS), THIS

COULD BE APPROPRIATELY ADJUSTED FOR LESS THAN FULL

COVERAGE:

(4) GROWTH TO BE MINIMUM OF 5% AS PER ANNEX B OF LTA BUT IN

ANY CASE NOT LESS THAN GROWTH RATE GIVEN TO JAPAN: DESPITE

THE INDICATIONS IN PARAGRAPH 2(11) OF UKDEL EC TELEGRAM

NO. 4 TO GOVERNOR HONG KONG, ERNST PROFESSED THAT THE

JAPANESE WOULD, IF ANYTHING, BE GIVEN LESS THAN HE WAS

OFFERING TO HONG KONG.

(5) MINIMUM CATEGORISATION:

/(6)

CONFIDENTIAL