TNAG-0627-FCO40-775-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 190

Annex

From the reports we have seen in the press and

from statements issued by the Government, it would appear

that some of our trading partners are not prepared to play

the game by some of the existing rules. The European Economic Community (EEC) is reported to be seeking changes to the MFA. This arrangement is, in the view of textile

exporting countries, already a restrictive instrument.

The reports have it that the EEC wants to make it more

restrictive, thus making the framework for future negotiations

even more unfavourable to exporting countries.

I am particularly disturbed from press reports

that the United Kingdom, is said to be a party to the proposals

for such changes. If these reports are accurate, and there

appears to be no reason to suggest that they are not, they would seem to undermine the very positive, helpful and encouraging

remarks made by Sir Peter Carey, a senior civil servant in the Department of Industry in the United Kingdom who visited Hong Kong recently, and who, on departure, emphasised the special relationship between the United Kingdom and Hong Kong

and the determination of the U.K. Government to ensure that

in matters relating to commercial relations, regard would be

had of this special relationship. I think, Sir, the public

in Hong Kong is entitled to re-assurance from Her Majesty's Government that it would play no part in the EEC in matters which adversely, and more importantly, unfairly affect Hong Kong;

and indeed it should be expected to go further by defending

Hong Kong in such circumstances.