TNAG-0384-FCO40-430-Trade-relations-between-Hong-Kong-and-the-EEC-1973 — Page 168

"C. & 1. 200 2700206

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TEL KAPHIC ADDRESS:--

"CANDIHONG" HONG KONG

CONFIDENTIAL

w/83

COMMERCE & INDUSTRY DEPARTMENT,

FIRE BRIGADE BUILDING.

HONG KONG. KONG.

8 August

are

کھانا اسعد

ready

1973

го кабе

Convenion

OUR

REF.:

YOUR REF.:

CR/EIC 230/5/11/1 II

Min

Hope

ky

dear Liz,

the C'ssion

chaupe

their live

Conversion Factors

1/148

I thought it might be of interest to you to have a note on the discussion we had in Brussels on 26 July with the Commission on the continuing saga of conversion factors.

The meeting took place in Meynell's office with DGI also being represented by Paoli, Sutton and ne. Monforte. DGIII was represented by Walter Pacht and Lehembre.

From the outset it appeared that there was a fresh attitude on the part of the Commission. The old administrative inertia which had caused the Commission to reject the commonsense approach in the first place, and then to allow the problem to run on for an unconscionable time without tackling it, seemed to have given way to a willingness to get things right. Paoli found himself very much on the defensive when asked (by his colleagues not by us) to define the difficulties which had lain in the way of expressing previous restraint agreements in which Meynell called "trade related terms". Apart from some vague generali- sations, Paoli was unable to oblige with any such information. The fact that Nimexe statistics were shown to be maintained in pieces for nearly all garments did not help him along the way. His more recently arrived colleagues seemed to grasp quickly that if the problem identified by Hong Kong was not dealt with promptly and realistically it could, especially with UK harmonisation, cause increasing problems.

The outcome of the session was agreement that DGIII would undertake a thorough examination of our proposals and would analyse any technical difficulties that might be expected from them. The possibility was mentioned of setting up a small technical working group when the next phase if the difficulties, if any, had been more clearly defined.

I think you will agree that this represents a move in the right direction. I was a little concerned when I heard fron Walter Facht in Geneva last week that Robin Hope had told hin a couple of days carlier in London something to the effect

Miss L. Lowne,

Department of Trade and Industry,

Millbank Tower,

Millbank,

London SWIP 4QU,

England.

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CONFIDENTIAL

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