TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 171

CONFIDENTIAL

8. ELSON REPEATED HANEMANI'S PHRASE ABOUT BEING AS LIBERAL AS POSSIBLE TO HONG KONG, AND IN GATT. HE ACCEPTED THAT THERE WAS A

NGER IN THE PRESENT SITUATION THAT THE COMMUNITY WOULD COME TO A

GHLY ILLIBERAL POSITION WHICH COULD SET A DANGEROUS PATTERN: THIS

THE GERMANS WISHED TO AVOID. ELSON SAID THAT THE GERMANS WISHED TO

PROVIDE IN ANY AGREEMENT MADE WITH HONG KONG FOR ANNUAL INCREASES, ACCEPTED THAT RESTRAINTS SHOULD BE APPLIED ONLY ON PARTİCULAR PRODUCTS THE GERMAN LIST WHICH WOULD BE DISCUSSED ON 30 JANUARY IN BRUSSELS CONTAINED SOME MODIFICATIONS TO THE COMMISSION'S

LIST WHICH WOULD RESULT IN ITS BEING SOMEWHAT REDUCED AND THEY

WERE IN FAVOUR OF A MORE RECENT BASIS PERIOD (1970/72) THAN THAT SUGGESTED BY THE COMMISSION (69/71), WHICH WOULD HAVE THE EFFECT

OF GIVING HONG KONG A MORE FAVOURABLE POSITION. THEY WOULD REGARD

ANY ARRANGEMENTS MADE WITH HONG KONG AS BEING APPLICABLE ONLY

UNTIL ANY MULTILATERAL REGULATION OF THE SITUATION WERE ACHIEVED:

AND THEY CERTAINLY HAD NO WISH TO PREJUDICE THE POSITION IN GATT. HE CONFIRMED, IN ANSWER TO A QUESTION, THAT THE GERMANS WOULD BE VERY RELUCTANT TO CONSIDER PROCEEDING BILATERALLY RATHER THAN ON A COMMUNITY BASIS, THOUGH HE ADMITTED THE DANGER THAT THE RESULT MIGHT BE MORE RESTRICTIVE THAN THE GERMANS NEEDED OR WISHED.

9. STATHAM SAID THAT HE IMAGINED THAT LAM WOULD WISH TO DISCUSS THE

QUESTION FURTHER WITH ELSON INFORMALLY IN GENEVA NEXT WEEK.

FCO PASS ADVANCE COPIES TO HALL (FCO) LAM, GWINNELL AND

RIDLEY (DT!)

FCO PASS SAVING TO

COPENHAGEN DUBLIN THE HAGUE LUXEMBOURG

PARIS ROME AND BRUSSELS

HENDERSON

[REPEATED AS REQUESTED]

EUROPEAN ECONOMIC DISTRIBUTION

ADDITIONAL DISTRIBUTION

T.R.D.

FRAME

E.I.D.

H.K.I.O.D.

F.E.D.

W.E.D.

-3-

CONFIDENTIAL

COPIES TO:-

MR LAM, DTI

MR GWINNELL, DTI

MR RIDLEY, DTI

MR HOPE, CTD, DTI