TNAG-0237-FCO40-273-Trade-relations-between-EEC-and-Hong-Kong-1990 — Page 97

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3. MOHLER SAID THAT AGREEMENT HAD NOT HOWEVER BEEN REACHED

IN THE COMMUNITY AS TO THE BASIS ON WHICH THESE OFFERS SHOULD

BE CALCULATED. WITH REGARD TO THE DEVELOPING COUNTRIES, INDIA

WAS ASKING FOR A BASE FIGURE SOME 20 PER CENT ABOVE THE FIGURE

CONTAINED IN ITS CURRENT ARTICLE ↳ AGREEMENT WITH THE COMMUNITY:

BUT NO COMMUNITY POSITION ON THIS REQUEST HAD BEEN REACHED,

WITH REGARD TO HONG KONG THE IMPRECISION WAS EVEN GREATER.

THE GERMANS WERE PROPOSING THAT THE 3 PER CENT GROWTH FIGURE

SHOULD BE CALCULATED ON THE BASIS OF AN EXTRAPOLATION OF THE

FIGURES FOR COMMUNITY IMPORTS FROM HONG KONG FOR THE FIRST

MONTHS OF 1970, 1.E. THE PERIOD PRECEDING THE EXPIRY OF THE

PRESENT LTA, OTHER MEMBER STATES AND THE COMMISSION FAVOURED

CALCULATION ON THE BASIS OF 1969 FIGURES: BUT THERE WAS NO CLEAR

AGREEMENT AS TO WHICH SET OF 1969 FIGURES WERE TO BE USED.

ERNST HAS TOLD THE MEMBER STATES THAT THE COMMISSION FELT ABLE

TO INCREASE THE GROWTH FIGURE FOR HONG KONG FROM THE ONE TO

TWO PER CENT WHICH IT HAD PREVIOUSLY ENVISAGED TO THE PRESENT

3 PER CENT DECAUSE IMPORTS FROM HONG KONG DURING 1969 WERE

TURNING OUT LESS HIGH THAN THEY HAD THOUGHT. THAT IS TO SAY ERNST

LET IT BE UNDERSTOOD THAT HE WAS NO LONGER USING THE EXAGGERATED

1969 BASE FIGURE WHICH HE HAD PREVIOUSLY EXTRAPOLATED FROM THE

FIRST NINE MONTHS OF 1969: BUT HE DID NOT SPECIFICALLY SAY THAT

HE WAS USING THE MUCH LOWER HONG KONG EXPORT FIGURES.

4. IN REPLY TO A QUESTION, MOHLER SAID HE DID NOT EXPECT THE

GERMAN GOVERNMENT'S PROPOSAL FOR THE USE OF 1970 FIGURES TO BE

ACCEPTED EVEN THOUGH THEY WERE MAINTAINING A FORMAL RESERVE ON

AGREEMENT TO THE USE OF 1969 FIGURES. IT WAS TOO EASY FOR THE

OTHER MEMBER STATES TO POINT OUT THAT THE 1970 FIGURES WOULD

NOT BE KNOWN IN TIME. NOR DID HE THINK THAT THE GERMANS WOULD BE

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