TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 91

Draft telegram to UKREP Brussels. Info. Hong Kong

Your telegrams 1477 and 1510. Non-cotton textiles from Hong

Kong

In considering the next moves (as you suggest) we are inclined to favour some solution similar to that tentatively

Red 15,0 suggested in your para 5, i'e Community quotas with Member

States' shares high enough to be non-restrictive, where trade

But before considering

مسحتنا

is slight and disruption, absent.

exhaustively whether this would in fact be a. desirable and/or

b. attainable, we should be clear about the questions being asked and the answers we wish to give.

First, is there now a problem concerning Hong Kong's exports of non-cotton textiles to the Community? Answer: We do not know, but are prepared to believe that there may be. Since Germany is reasonably happy with the unilateral action

taken by Hong Kong at the end of January; the three new Member States have satisfactory bilateral arrangements; and Hong Kong's exports to France and Italy are negligible; it

follows that the problem is confined to Benelux.

In fact, we know unofficially that if it exists at all it is confined

to the Netherlands.

permended!

Second, how can the existence of this alleged problem be demonstrated? Answer: By the production of statistics showing that Hong Kong's increasing share of the market is causing or threatening to cause damage to domestic producers, such as short-time working, loss of employment,

trading losses, shelving of investment plans. The Benelux willingness to provide at least some evidence of this kind is a step forward. The Germans are solidly with us on this

Where fundamental point. [In practices of course market disruption cannot be proven; (but its existence can be agreed by the exporting country)]

Third, what happens if Hong Kong extends its unilateral restraint to Benelux? Answer: The problem, if it

would be eased to might resolve existed, existe no longer. Therefore there is no need for a I solution. But it would be opportune to continue the discussion