TNAG-0627-FCO40-775-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 240

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FM HONG KONG #40958Z

CONFIDENTIAL

RE

REGA

3. 31

-7 Feb 1977

HK* 121/6/6/1

TO PRIORITY FCO TELNO 131 OF 4 FEBRUARY

143T

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 EEC SPOKESMAN REFERRED MORE THAN ONCE TO THE MPA IN ITS PRESENT FORM AS

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

2. WE ALSO MADE IT QUITE CLEAR THAT THE EEC WOULD SEEK SUBSTANTIAL MODIFICATION OF THE MFA BEFORE AGREEING TO RENEW IT,

3. WE HAVE SINCE THEN HEARD INDICATIONS THAT THE COMMUNITY WOULD SEEK TO MODIFY THE MFA IN SUCH WAYS AS TO PERMIT THEM SUBSEQUENTLY IN BILATERAL NEGOTIATIONS WITH HONG KONG (AND PERHAPS OTHERS) TO SEEK TO DEPRIVE US OF ALL CROWTH, 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 OUTSIDE

OFFICIAL CIRCLES HERE BUT WE ARE, OF COURSE, CONCERWED THAT THEY SHOULD NOT BE CONFIRMED.

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

YOU THAT THE BURDEN-SHARING FORNUAL WHICH PRODUCED THESE GROWTH RATES WAS NOT IMPOSED ON THEN DY HONG KONG. INDEED, IT WAS PREVENTED TO OUR NEGOTIATORS AS A (NEXT TWO WORDS UNDERLINED ) FAIT ACCOMPLI

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