TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 137

RESTRICTED

3. TRAN EXPLAINED THAT AS THE RECORD SHOWED THE COMMUNITY

HAD WITH GREAT DIFFICULTY IMPLEMENTED THE 1973 MFA IN ACCORDANCE WITH ITS TRUE SPIRIT BUT NOW HAD ITS BACK AGAHIST THE WALL AND WAS NOT PREPARED TO ENTER COMMITMENTS WHICH IT COULD NOT ABIDE BY. EXPORTERS SHOULD LOOK ATO OTHER MARKETS AS WELL AS THE COMMUNITY FOR IMPROVED MARKET ACCESS. THE COMMUNITY'S MANDATE WAS NOT ONE SIDED AND STATED THAT IN SO FAR AS THE COMMUNITY SUCCEEDED IN OBTAINING THE DESIRED RESULTS IT WOULD EXAMINE WITH AN OPEN MIND CLAIMS MADE BY ITS PARTNERS. IF HONG KONG WAS NOT PREPARED TO CO-OPERATE IN BRINGING ABOUT A MORE EQUITABLE DISTRIBUTION OF IMPORTED OPPORTUNITIES IT WOULD BEAR THE RESPONSIBILITY FOR FAILURE OF THE NEGOTIATIONS WHICH WAS BOUND TO HAVE AN IMPACT ON ITS RELATIONS WITH THE COMMUNITY. STABILISATION OF IMPORT PENETRATION RATES DIDNOT MEAN A FREEZE IN THE LEVELS OF IMPORTS, BUT THE GEARING OF GROWTH OF IMPORTS TO GROWTH OF CONSUMPTION. THIS WAS NECESSARY FOR THE COMMUNITY IN RESPECT OF EIGHT PRODUCTS IN PARTICULAR WHICH TRAN SPECIFIED.

FROM THE CHAIR LONG (DIRECTOR GENERAL GATT) CONCLUDED THAT THE TEXTILES COMMITTEE SHOULD INTERRUPT ITS PROCEEDINGS UNTIL SUCH A TIME AS THEY COULD USEFULLY BE RESUMED FOLLOWING CONS- ULTATIONS. THIS WILL PROBABLY BE SOMETIME NEXT WEEK.

FCO PASS ADVANCE COPIES TO:

DOI

RIDLEY, HUDSON, MISS LOWNE

DOT WRIGHT, MISS MCFARLANE,

HARRIS CCABINET OFFICE)

STERNE (CIDE)

BOTTOMLEY

FILES

EID (E)

PRES SEC UN DEPT

TRED

NAD

HK&GD

MR HIBBERT

MR FREWELL

MR BUTLER MR THC MAS

[ADVANCED AS REQUESTED]

COPIES TO:

ADVANCE ADDRESSEES

TUOTO) FAUSTUN