TNAG-0342-FCO40-378-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 111

31

Cance

Mi Comary

tim

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18/7.

RECEIVED IN REGISTRY No.51 24 AUG 1972

NKK 6/8

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11/16/18/1

Extrad

HIKL/526/8

Note for File

TEXTILES

1.

Messrs Ho and Sellers (Hong Kong Government) called on Mr Ridley this morning for a tour d'horizon following on the first meeting in Geneva of the GATT Working Party on Textiles. The following subjects were discussed.

GATT WORKING PARTY

2. Mr Ho mentioned (in confidence) that the Americans in Geneva had suggested to Ho outside the meeting that the GATT study might be more effective if a small steering group might be established. Mr Hope said that M. Long had not mentioned this in his summary of the meeting nor directly accepted various Japanese proposals, including one for the drafting of a questionnaire. Mr Ridley said that, if there was a majority in favour of a small steering group, we would have no objections but there was not much time (the Working Group has to report by the end of the year) for action to be completed.

COTTON TEXTILES

3. Mr Ridley confirmed that letters were being sent today to Mr Cater covering the agreement we had reached following the June talks as well as the question of conversion factors. Assuming that Mr Cater could accept these documents we would be putting the contents to the Commission formally soon after (Mr Ridley mentioned that he had discussed the various implications with Herr Ernst informally yesterday; the latter had not commented in substance). It seemed likely there- after that the Commission would be undertaking the necessary talks with supplying countries after the August recess but possibly would be able to indicate before then whether or not they broadly agreed with the proposals in question. This would probably be enough to give the trade and others some indication of the way things would go in 1973.

NON-COTTON TEXTILES

4.

On an informal and strictly confidential basis, Mr Ridley told Mr Ho that, unless there were any last- minute hiccups, we would expect to be attending Hong Kong (South Korea and, as appropriate, Taiwan) during next week to arrange discussions (say to be held about a fortnight later) on polyester cottons. Mr Ridley gave a brief outline of our negotiating stance. Mr Ho queried the use of 1971 (rather than the most recent representative period) for the base period and also the fact that we were not intending to follow the selective (end commodity-by-commodity) approach. There was little substantive discussion on these

/points