5
was
The related question of the current discussions on 'burden sha ring' raised. It was suggested that the UK might come in for criticism from Hong Kong if our position became known, and especially if we agreed to introduce new restraints on knitwear. It would then be more difficult to argue that the UK was defending Hong Kong interests. It was however pointed out that had HMG not resisted industry pressure Hong Kong would have been subjected over a year ago to restrictions on knitwear imports to this country. There had been a feeling in the Community that Hong Kong should be treated as a special case even among the # supercompetitive'. and at least thanks to UK resistance we had avoided this. We had also so far been able to resist pressure to impose limitations at the importing end rather than accepting voluntary export control; the battle on this issue was not over,
since both France and Germany had strong feelings on the subject.
6
Summing up the meeting, Mr Roberts said there seemed to be agreement on the main point, that we should discourage Hong Kong from threatening non-cooperation in the textile negotiations. CRE 2 would prepare a brief on the subject for the Preston/Jordan meeting and circulate it for comments.
CRE 2/3a
17 October 1974
Distribution: Those present
2
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