CYPHER/CAT A
PRIORITY BRUSSELS
TELEGRAM NO. 47
CONFIDENTIAL
131438Z
PAT
"216"
130
TOP COPY
CONFIDENTIAL
TO GOVERNOR HONG KONG
13 NOVEMBER 1979
(NEUTRAL]
ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NO. 47 OF 13 NOVEMBER
1973 AND RFI TO UKNIS GENEVA (FOR JONES) AND SAVING TO
UKDEL EEC.
FROM DODGE.
HONG KONG/EEC: COTTON TEXTILES
125 145
FURTHER TO MY TELEGRAM NO. 46 (NOT TO ALL
BY THIS MORNING THE COMMISSION HAD PREPARED THEIR PAPERS IN VIRTUALLY FINAL FORM AND THE INITIALLING MIGHT HAVE TAKEN PLACE THIS AFTERNOON AFTER SOME NINOR TIDYING-UP, SAVE THAT A MAJOR SHAG HAS ARISEN.
2.
THE COMMISSION ARE NOW ATTEMPTING TO RECAST THEIR
CONFIDENTIAL LETTER ON ADMINISTRATIVE ARRANGEMENTS ETC. TO
ORIT ALL REPEAT ALL REFERENCE BY THE COMMUNITY TO CONVERSION FACTORS, I.E. A CUT BACK TO A SIMPLE OBLIGATION ON HONG KONG TO INDICATE METRIC TONNAGE (HOWEVER ARRIVED AT) ON OUR EXPORT LICENCES. THE CONVERSION FACTORS TABLE COULD, IN THEIR VIEW, BE ANNEXED TO OUR ELABORATED REPLY, SUITABLY REVISED
TO COVER IT AS AN ENCLOSURE.
I RESISTED THIS MOVE VERY STRONGLY AND REFUSED TO GO
BEYOND SOME POSSIBLE TEXTUAL AMENDMENTS TO THEIR SIDE-LETTER, FOR EXAMPLE, TO EXPAND TO IN ACCORDANCE WITH THE INTERNAT- IONAL CONVERSION FACTORS ESTABLISHED BY THE GATT AND THE
US ANNEXED HEREWITH''.
4.
ERNST REMAINS ADAMANT. HE REFUSES TO HAVE THE CONVERSION
FACTORS TABLE ANNEXED TO ANY COMMUNITY SIDE-LETTER.
1, FOR
MY PART, HAVE EQUALLY REFUSED, PENDING YOUR INSTRUCTIONS, TO AGREE TO ANY REVERSION TO A BARE MENTION OF METRIC TONS IN THEIR SIDE-LETTER. THE PROPOSAL WOULD OF COURSE LEAVE
US WITH NO VESTIGE OF COMMUNITY AGREEMENT, AS SUCH, TO THE
ACTUAL CONVERSION FACTORS.
HIL116/6
CONFIDENTIAL
/5. THE
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