TNAG-0627-FCO40-775-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 202

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Mr Murray

RE

RECEICONFIDENTIAL

No. 01

9 MAR 1977

HKK 121/616/1

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HONG KONG: FUTURE OF THE MULTI-FIBRE ARRANGEMENT (MFA)

1. You will remember that Mr Cortazzi, having written his minute of 11 February, suggested that you might write to the Governor of Hong Kong to rebut the point made in paragraph 11 of his telegram no. 131, that the implementation of the Hong Kong Government's social programmes would be put at risk if renegotiation of the MFA were to lead to cut-backs in Community quotas on Hong Kong textiles. It is clear that we cannot accept this proposition for the reasons that Mr Cortazzi explained to Mr Jordan.

2. There is also the question of a reply to the other points raised in Hong Kong telegram no. 131 and, in particular, that in paragraph 13 which asks for an assurance that there will be no further reduction in the growth potential of Hong Kong's textile exports to the Community. It was originally thought that a

Since telegram should be sent in reply to the Governor's message. Mr Jordan's visit, however, we and EID have concluded, in consulta- tion with the DOI and DOT, that it would be better to answer by means of a letter explaining the pressures on the Community in general and HMG in particular in connection with the future of the MFA. Since you are to write about the connection which the Governor has drawn between social programmes and the MFA, EID and we think that it would be appropriate for you to combine this with an explanation of the pressures at work in relation to the MFA.

3.

I submit a draft letter to the Governor of Hong Kong, which has been prepared in EID and my department, and which is acceptable to the DOI and DOT.

f.ee. B. But

JA B Stewart

Hong Kong Department

21 February 1977

Cc:

Mr Arbuthnott (EID (E)

This is

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be dismissed, and

CONFIDENTIAL

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