TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 148

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FM HONG KONG 081050Z

. CONFIDENTIAL

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RECED IN REGI. 51

11 JUL 1977

(83) (10

HKK 1211611

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TO IMMEDIATE F C O TELNO 684 OF 8 JULY

INFO IMMEDIATE BRUSSELS (FOR BURGESS), PARIS,

PRIORITY UKMIS GENEVA (FOR MILLS), UKREP BRUSSELS

AND HONG KONG GOVERNMENT OFFICE LONDON (FCO PLEASE PASS).

YOUR TELNO 506:

FRENCH TEXTILE RESTRICTIONS.

WE ARE GRATEFUL FOR THE APPROACH MADE BY PARIS AS REPORTED IN

THEIR TELEGRAM 629 TO YOU.

2. BUT AS PARIS HAS POINTED OUT, IN SPITE OF THE CLARIFICATION IT HAS OBTAINED THERE IS LIKELY TO BE FURTHER DELAY BEFORE THE EXCACT SITUATION BECOMES KNOWN: AND AS YOU AND PARIS HAVE BOTH FOINTED OUT, THERE IS STILL A GREAT DEAL OF UNCERTAINTY ABOUT THE OUTCOME IN THE COMMUNITY.

3. BURGESS HAS OF COURSE BEEM IN TOUCH WITH THE COMMISSION. BUT APART FROM VAGUE EXPRESSIONS OF BELIEF THAT THE RESTRAINT LIMITS IN THE EEC/HK BILATERAL AGREEMENT UNDER THE MFA WILL BE RESPECTED,

ALTHOUGH THERE MAY BE PROBLEMS IN RESPECT OF THE ADMINISTRATION OF QUOTAS, ALL THAT THE COMMISSION HAVE BEEN ABLE TO TELL US IS THAT

CONSULTATIONS WITHIN THE COMMUNITY ARE CONTINUING: AND THAT UNTIL THESE CONSULATIONS HAVE BEEN CONCLUDED THEY CANNOT PREDICT WHAT COURSE WILL BE ADOPTED BY THE COMMUNITY. THIS IS NOT GOOD ENOUGH,

BUT THERE IS NOTHING MORE BURGESS CAN DO.

4. ON THE OTHER HAND, ACCORDING TO INFORMATION PROVIDED BY OU. EXPORTERS AND BY THE HONG KONG TRADE DEVELOPMENT COUNCIL OFFICE IN PARIS, THE FRENCH CUSTOMS AUTHORITIES HAVE OBVIOUSLY ALREADY

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