TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 177

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FM UKREP EC BRUSSELS 2312457

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TO PRIORITY FCO TELNO 326 OF 23 JANUARY INFO ROUTINE BOGH COPENPAGETI

DUBLIN THE HAGUE LUXEMBOURG PARTS ROME UKMIS GENEVA INFO SAVING. BRUSSELS (FOR DODGE) GOVERNOR HONG KONG

FCO TELEGRAM NO. 54 TO BONN

RESTRAINTS ON NON-COTTON TEXTILES FROM HONG KONG

1. AT THE MEETING OF THE TEXTILES WORKING GROUP ON 22 JANUARY, THE UK WAS REPRESENTED BY GWINNELL AND COSTIN' (DTI) AND DE FONDLANQUE (UKREP).

2. ERNST (COMMISSION) OPENED BY SAYING THAT IN VIEW OF THE - UK'S POLYESTER COTTON AGREEMENT WITH HONG KONG THE LATTER HAD BECOME THE MOST DISRUPTIVE SUPPLIER OF NON-COTTON TEXTILES TO THE OTHER

MEMBERS OF THE COMMUNITY. THERE WAS NO TIME TO DISCUSS AT THIS POINT

OTHER S.E. ASIAN COUNTRIES. ANY VOLUNTARY RESTRAINT AGREEMENT MUST

DE NEGOTIATED BY THE COMMUNITY AS A WHOLE ON THE BASIS OF AGREED

SENSITIVE ITEMS.

3. GWINNELL OUTLINED THE UK'S POSITION SAYING THAT, WHILST IT WAS

POSSIBLE THAT THE GERMANS HAD A CASE, COMMUNITY-WIDE RESTRICTIONS

SHOULD HAVE A SPECIFIC PURPOSE, E G MINIMISATION OF UNEMPLOYMENT,

AND SHOULD BE SELECTIVE IN COVERAGE AND OF LIMITED DURATION AND THAT

DAMAGE TO THE HOME INDUSTRY SUCULD BE PROVEN.

4. THE GERMAN DELEGATION CRITICISED THE UK'S RESTRAINT AGREFHOUT WITH HONG KONG. THEY WERE PREPARED TO BE LIBERAL BUT WERE SUFERIM FROM THE DIVERSION OF GOODS FROM THE US AND LATTERLY U K MARKETS

TO THE EXTENT THAT IMPORTS OF CERTAIN PRODUCTS BAD DOUBLED IN THE

LAST 4 MONTHS. THIS WAS BECOMING A POLITICAL PROBLEM IN GERMRTY PRESSURE FROM UNIONS WAS BUILDING UP, THEY AGREED WITH THE COMMIS-I

SION'S PROPOSALS INCLUDING THE LIST OF SENSITIVE PRODUCTS CIRCUL/TU

IN SEPTEMBER, SUBJECT TO MINOR MODIFICATIONS.

5. THE FRENCH AND ITALIAN DELEGATIONS, SUPPORTED BY THE TRISH,

FAVOURED AN OVERALL SOLUTION WHICH WOULD RESTRICT ALL NOM-COTTOJ

PRODUCTS WHETHER SENSITIVE OR HOT AND WHICH WOULD NOT BE COMENTA

TO HONG KONG, THE FRENCH ARGUED HOWEVER THAT IT WOULD TAKE A COM

SIDERABLE TIME TO APREE OR SUCP A SOLUTION AND THAT $5 AH HECURIT

MEASURE THE COMMU!!ITY SHOULD TAKE UBILATERAL, PLASURES,

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