TNAG-0627-FCO40-775-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 229

CONFIDENTIAL

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CONFIDENTIAL

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TO PRIORITY F C O TCLNO 131 OF 4 FEBRUARY

INFO PRIORITY HONG KONG GOVERNMENT OFFICE LONDON (FCO PLEASE PASS).

HONG KONG AND THE FUTURE OF THE MEA.

AT THE TEXTILES COMMITTEE MEETING IN GENEVA IN DECEMBER THE EGG SPOKESMAN REFERRED MORE THAN ONCE TO THE MEA IN ITS PRESENT FOW 43

SERVING THE INTERESTS OF ONLY TWO DEVELOPING COUNTRIES. EVERYONE UNDERSTOOD HIM TO MEAN HONG KONG AND SOUTH KOREA,

2. HE ALSO MADE IT QUITE CLEAR THAT THE EEC WOULD SEEK GUBSTANTI M. MODIFICATION OF THE MFA BEFORE AGREEING TO RENEW IT.

3. WE HAVE SINCE THEN HEARD INDICATIONS THAT THE COMMUNITY MOHD SECK TO MODIFY THE MEA IN SUCH WAYS AS TO PERMIT THEM SUBSEQUENTLY IN DILATERAL NEGOTIATIONS WITH HONG KONG (AND PERHAPS OTHERS) TO SEEK TO DEPRIVE US OF ALL GROWTIL, IT HAS EVEN BEEN SUGGESTED THAT THEY MIGHT SEEK TO REDUCE OUR EXISTING QUOTAS..

4. SINCE THESE ARE ONLY RUMOURS THEY HAVE NOT BEEN DISCUSSED OUT DA

OFFICIAL CIRCLES HERE BUT VE ARE, OF COURSE, CONCERNED THAT THEY SHOULD NOT BE CONFIRMED.

5. IT HAS BEEN SUGGESTED THAT CERTAIN MOMBER STATES WHO HAVE ACCEPTED HIGHT GROWTH RATES UNDER THE CURRENT BILATERAL EEG/IK AGREEMENT MAY BE PARTICULARLY KEEN TO CUT US BACK, I NEED NOT REMIND

YOU THAT THE QURDAN-SHARING DORMUAL VIICH PRODUCED THESE GROWTH RATES WAS HOW IN OSEO ON THEN BY HUMS KONA, INDEED, IT WAS PRESENTED TO OUR NEGOTIATORS ABA (NEXT TWO MOROS UNDERLINED ) FAIT ACCOMPLI