CONFIDENTIAL
CALL BY THE GOVERNOR OF HONG KONG ON MR JUDD, 30 NOVEMBER 1977
LINE TO TAKE
1. We are very glad that Hong Kong was able to authorise its negotiators to return to Brussels. An agreement now looks near. The Governor will be aware of the considerable efforts the UK
has made to prevent further erosion of the offer to Hong Kong.
2. As we assured you in our messages, we do not foresee particular problems about a transitional period during the change- over to the new product classification, nor about Hong Kong's continued export administration of the new quotas.
3. We understand there are certain problems in the negotiations about the less sensitive products (those outside Group I).
The
UK Representatives in Brussels are doing their best to limit their concerns strictly to those products of real importance to us, and are advising the Commission to be flexible on the rest.
4. [If the Governor returns to his argument that the Community is simply giving away Hong Kong's historic quota access to other suppliers). The EEC's tough negotiating stance has the full support of UK Ministers. Some degree of cutback for the dominant suppliers is necessary if the EEC is to maintain the overall ceilings set for the most sensitive products. We cannot exclude newcomers from our markets. The only way therefore to maintain the overall ceilings is to make specific provision for them.
5. We have been somewhat disturbed about reports of Hong Kong's
role in Geneva. We are confident that, when an acceptable agree- ment has been concluded in Brussels, which should be in the next few days, Hong Kong's representatives in Geneva will do their best. to avoid criticism of the Community in the GATT Textiles Committee.
6. The tone adopted by Hong Kong's negotiators in Brussels, particularly David Jordan (Director of Trade, Industry and Customs), has not helped matters either.
CONFIDENTIAL
/BACKGROUND
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