TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 48

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Reference. HKK 6/6

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PA

Hesper

sex

letter af

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EEC TEXTILES GROUP

1. I have discussed with TRD and DTI C & T Division Brussels telegrams 2092 and 2093 and Hong Kong telegrams 428 and 429.

2.

The telegrams from Brussels report the meeting of the Textiles Group on 16 April. The first outlines the future programme in respect of the GATT. This is acceptable. Telegram number 2093 covers conversion factors and possible negotiations with Hong Kong over non-cotton textile exports to Community countries.

3. To take the latter first, the DTI have written to Hong Kong to correct the statement that the UK "opposed the opening of negotiations". We shall be getting a copy of this letter. We did, however, emphasize that wider negotiations would be taking place later in the year. No date was fixed for the May meeting. Hong Kong telegram number 428 is in response to this point. It repeats at some length Hong Kong's reasons for not wish- ing to take action in respect of their exports to Holland. DTI continue to think that Hong Kong's best interests would be served by some form of restraints. What these cover is a matter for Hong Kong to decide. The telegram ignores, or probably more accurately refuses to accept the obvious fact that the Community has its own pressures and methods of work although these points have been made many times-most recently whilst Mr Dorwood was in the UK recently. Paragraph 4 shows this lack of comprehension. Nevertheless the main point is contained in paragraph 5 where both the UK and Hong Kong, are one in emphasizing the wider negotiations later this year. Hong Kong are right that it would be better for talks to take place in the summer rather than the autumn, but it is very unlikely that this object be achieved in practice.

4.

Conversion factors are a very technical subject. The question is how can yardage be converted accurately into metric tons. This is something that the Hong Kong Government should be taking up themselves with the Community. The way the Community works is perhaps well illustrated by the fact that three-quarters of a day was spent discussing whether the Germans should be allowed an increase in their imports following a sharp revision of the conversion factors which led to a substantial decrease in the amounts shipped. We can agree with Hong Kong that this is unsatisfactory, but if the Germans are prepared to accept the operation of the conversion factors in this way there is not much that we can do to help.

15.

(17293) 897465 400m 1/73 G.W.B.Ltd. Gp.863

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