TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 114

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7. ONE FURTHER POINT OF PERPLEXITY (IT MAY HAVE BEEN COVERED IN THE TALKS ON 12 MARCH, BUT OMITTED IN JONES' BRIEF REPORT) IS THE APPARENT ACCEPTANCE OF QUOTE REGIONAL UNQUOTE ACTION BY FRANCE AGAINST MACAO (SEE PARA 7 OF UKREP BRUSSELS TELEGRAM 983 TO YOU), WHILE IT HAS TO BE CONCEDED, ALBEIT IN PRINCIPLE ONLY, THAT GERMANY'S PROBLEMS WITH HONG KONG HAVE TO BE DEALT WITH ON A COMMUNITY-WIDE BASIS. YOU WILL APPRECIATE THAT ANY APPARENT

DIFFERENCES IN APPROACH WILL QUICKLY COME TO THE NOTICE OF MEMBERS OF THE TEXTILES ADVISORY BOARD AND WILL UNDERMINE OUR CREDIBILITY.

8. I TRUST YOU WILL NOW HOLD FIRMLY TO THE SELECTIVE APPROACH AT THE MEETING ON 16 MARCH, AND THAT YOU WILL BE ABLE TO GIVE US THE NECESSARY ASSURANCES FOR USE WITH THE TEXTILES ADVISORY BOARD

VIS-A-VIS EXTENDING OUR UNILATERAL RESTRAINT TO THE BENELUX.

9. YOU WILL UNDERSTAND THAT OUR CONCERN OVER THESE DEVELOPMENTS

STEMS FROM TWO BASIC PROPOSITIONS:

(A) THAT HONG KONG'S INTERESTS ARE BEING SUBORDINATED TO THE SHORT-TERM, UNPROVEN CLAIMS OF INDIVIDUAL MEMBER STATES AND

(B) THAT WE ARE IN REAL DANGER OF LOSING THE LAST SIGNIFICANT AREA OF UNRESTRICTED ACCESS FOR HONG KONG NON-COTTON TEXTILES FOR

REASONS ONLY MARGINALLY CONNECTED WITH THE IMPACT OF OUR EXPORT

PERFORMANCE IN THAT AREA.

MACLEHOSE

[REPEATED AS REQUESTED]

INTERNATIONAL TRADE DISTRIBUTION

COPIES TO:

HKIOD

TRD

HONG KONG GOVT OFFICE 6 GRAFTON STREET, W1

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