TNAG-0463-FCO40-528-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 62

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4. AS FAR AS TEXTILES WERE CONCERNED, THIS WAS AN EVEN MORE SENSITIVE

AREA THAN FOOTWEAR, THEY ILLUSTRATED THIS BY THE FACT THAT THEY H,

ROUND IT NECESSARY FOR POLITICAL REASONS TO WITHDRAW OFFERS OF INCREASED QUOTAS WHICH THEY HAD MADE WITHIN THE LAST YEAR TO EAST EUROPEAN SUPPLIERS. THE IMPLICATION WAS THAT THE GERMANS WOULD FIND

OFFICULTY IN OPPOSING COMMISSION PROPOSALS WHICH INVOLVED THE MAINTENANCE OF THE STATUS QUO THROUGH 1975 (WITH PERHAPS A GROWTH CLEMENT OF ABOUT 5 PER CENT) IF THESE WERE ACCEPTABLE TO THE MAJORITY OF THE COMMUNITY. THEY ENQUIRED WHETHER HONG KONG COULD CONSIDER THE REMOVAL OF DISCRIMINATION ON A SELECTIVE BASIS. DODGE

AID TSAO DECLINED TO RISE AND STRESSED THE NEED FOR AND END TO

DISCRIMINATION ACROSS THE BOARD.

'

5. THE GERMANS LISTENED ATTENTIVELY TO DODGE AND TSAO'S ARCUMENTS ON THE COMMISSION PROPOSALS ON "PRIVILEGED COUNTRIES. THEY VOLUNTEERD

THAT THEY FOUND THEIR ARGUMENTS IN THE AREA PARTICULARLY VALID'

AND THEY WOULD SEE WHAT THEY COULD DO TO MEET THEM. THEY VOLUNTEERED

THAT THEY THEMSELVES CONSIDER THAT THE RESIDUAL SENSITIVE LIST WAS

TO SHORT AND WOULD UNDOUBTEDLY BE EXTENDED.

6. SUMMING UP, THE GERMANS UNDERTOOK TO CONSIDER THE WHOLE OF THE HONG KONG PRESENTATION WITH CARE. THEY SHOWED INTEREST IN THE

DOCUMENTATION WHICH DODGE AND TSAO LEFT BEHIND. BUT WHEN, WINDING UP FOR OUR SIDE, UNWIN SUGGESTED THAT THERE MIGHT BE ADVANTAGE IN A LATER MEETING WITH HONG KONG REPRESENTATIVES, BY WHICH TIME THE GERMANS MIGHT HAVE BEEN ABLE TO TAKE FURTHER THEIR EXAMINATION OF

THE HONG KONG CASE IN THE LIGHT OF THEIR OWN DIFFICULTIES ON FOOTWEAR

AD TEXTILES, THE GERMANS REFUSED TO BE DRAWN. THEY MADE IT CLEAR T THAT THEY FULLY UNDERSTOOD THE HONG KONG CASE. THEY RESERVED THEIR

POSITION, BUT IN THEIR DISCUSSIONS WITH COLLEAGUES WITHIN GERMAN

MINISTRIES AND IN THE COMMUNITY THEY WOULD BEAR IT IN MIND.

7. IN THE LIGHT OF PARIS TELEGRAM TO BRUSSELS NUMBER 093, DODCE HAS

ASKED US WHETHER THERE COULD BE ANY SIGNIFICANCE IN ELSO'S FAILURE

TO RECEIVE HIM AND IN THE GERMAN'S RELUNTANCE TO SEE HONG KONG

REPRESENTATIVES AGAIN, WE THINK THIS UNLIKELY, ALTHOUGH

ALTHOUGH THE MEETING

WITH LUTZ AND HORIG REVEALED SOME AREAS OF DIFFICULTY THE GENERAL

ATMOSPHERE WAS COOD AND THE GERMANS WERE HELPFUL AND FORTHCOMING.

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MR BUTLER

MR WILFORD

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