TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 145

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Sir D Watson

Watson

Mr Logan

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CONFIDENTIAL

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HONG KONG EXPORTS OF NON-COTTON TEXTILES TO GERMANY

1. Mr Royle will wish to know the outcome of the EEC Textiles

Working Group meeting on 2 February, which discussed the problem

caused by the rapid increase of Hong Kong's exports to Germany

of non-cotton textiles.

Following prompting from us (FCO tel No 102) the Hong Kong

Government decided (Hong Kong tel No 132) to take action direct

with the German Government. The Executive Council authorised

the immediate suspension of export licensing of these goods with

effect from 1 February.

(22

3. This approach was well received in Germany (Brussels tel No 3

to HK) and took much of the heat out of the situation. As a result

the Brussels meeting only discussed the problem in general terms

(Brussels telegram No 578). It was agreed that a further meeting

would be held on 22 February by which time delegates would have

had the opportunity to examine the Hong Kong Government's

proposals in detail. This is likely to be a businesslike

meeting.

4.

We are not yet in the clear. But if the 22 February

meeting goes well, it should mean that the control of Hong Kong's

exports of non-cotton textiles to Germany need no longer have

implications for the wider textile and commercial policies of

the Community. In the present circumstances there is therefore

no longer the same need for Mr Royle to raise this issue with

Sir C Soames.

7 February 1973

CONFIDENTIAL

A.C.St

A C Stuart

Hong Kong & Indian Ocean Department