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MAANAS
RE ARTING TO THE QUESTION OF COVERAGE, IT WOULD BE VERY HELPFUL IF WE COULD BE PROVIDED, FORMALLY, IN ADVANCE OF THE NEGOTIATIONS, WITH THE LIST OF PRODUCTS ON WHICH REGIONAL AND COMMUNITY-WIDE RESTRAINTS WILL BE SOUGHT FROM HONG KONG. ALTHOUGH THIS MAY APPEAR A SOMEWHAT UNORTHODOX REQUEST, WE THINK THERE ARE THREE GOOD REASONS WHY IT WOULD BE HELPFUL IF IT COULD BE MET. FIRST, WE WILL HAVE TO BE TOLD AT SOME STAGE, AND IT WOULD BE CLEARLY TO THE ADVANTAGE OF ALL PARTIES IF WE ALL KNEW WHAT AREAS WE WILL BE CONCENTRATING ON. IT WOULD HELP US TO NARROW DOWN THE PROBLEM AND TO ASSESS THE EXTENT TO WHICH WE COULD MOVE FROM PRINCIPLE TO PRAGMATISM, HAVING REGARD TO OUR OTHER AGREEMENTS. SECONDLY, A CONSIDERABLE AMOUNT OF TIME WOULD BE SAVED AT THE NEGOTIATING TABLE: AND, THIRDLY, WE SHALL HAVE TO INSIST ON OPERATING EXPORT CONTROLS ON THE BASIS OF QUANTITATIVE UNITS USED IN NORMAL COMMERCIAL PRACTICE IN ACCORDANCE WITH ARTICLE 5 OF THE M F A. IN ORDER TO DO THIS WE SHALL HAVE TO AGREE CONVERSION FACTORS. WE DO. NOT WANT - AND NEITHER WE THINK, DOES THE COMMUNITY - TO SEE CONVERSION FACTORS BECOMING A MAJOR ELEMENT IN THE NEGOTIATIONS. IT WOULD BE MUCH BETTER TO GET THE CONVERSION FACTOR PROBLEM OUT OF THE WAY, AND WE COULD DO THIS MORE EASILY IF WE KNEW WHAT PRODUCTS WE SHOULD BE DEVISING CONVERSION FACTORS FOR.
8. WE ARE ALSO CONCERNED ABOUT A NUMBER OF OTHER POINTS IN THE NEGOTIATIONS, SUCH AS THE CONSULTATION CLAUSE, SWING, GROWTH, CARRYOVER AND ANTICIPATION, AND WE WILL PROBABLY NEED TO ADDRESS
BUT THE FOUR YOU ON THESE WHEN OUR THINKING HAS CRYSTALLISED. POINTS MENTIONED ABOVE SEEM TO US TO BE CRUCIAL TO A SATISFACTORY OUTCOME TO THE NEGOTIATIONS. WE HOPE THAT YOU WILL BE ABLE TO TAKE' ACCOUNT OF OUR CONCERN, AS EXPRESSED ABOVE, AND BRING YOUR INFLUENCE TO BEAR ON THE COMMISSION AND OTHER MEMBER STATES IN ORDER TO ENSURE THAT HONG KONG IS NOT FACED WITH A MANDATE SO UNSATISFACTORY AS TO RAISE POLITICAL DIFFICULTIES BETWEEN YOU AND US.
F C O PLEASE PASS TO HONG KONG GOVERNMENT OFFICE LONDON.
MACLEHOSE
INTERNATIONAL TRADE, DISTRIBUTION,
COPIES TO
HKIOD TRED
EID WED
3
CONFIDENTIAT
HONG KONG GOVERNMENT OFFICE MIL L'OWNE
DOI.
MCW RODENT CRE2 DOT
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