TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 64

CONFIDENTIAL

5. IN THE LIGHT OF PARAGRAPH FOUR OF PARIS TELNO.691, WE ARE PREPARED TO LET MATTERS STAND FOR A FEW MORE DAYS IN THE EXPECTATION THAT AS SOON AS THE COMMUNITY-BASED MEASURES HAVE BEEN IMPLEMENTED, THE SITUATION AS FAR AS HONG KONG EXPORTS TO FRANCE IS CONCERNED WILL RETURN TO NORMAL. IF THIS DOES NOT HAPPEN WITHIN THE NEXT TEN DAYS OR SO AND THE FRENCH STILL REFUSE TO HONOUR THE AUTOMATIC LICENSING SYSTEM PROVIDED FOR IN ANNEX 111 OF THE SEC/HK TEXTILES AGREEMENT FOR SHIPMENTS MADE AFTER 23 JUNE,

WE SHALL HAVE TO RECONSIDER OUR POSITION..

MACLEHOSE

FILES HK & GD (5)

EID

WED

FRD

TREO

COPIES TO

MR S T KIDD HONG KONG GOVT OFFICE

PS/LORD GORONWY-ROBERTS

PS/MR TOMLINSON

PS/MR JUDD

PS/PUS

MR CORTAZZI

MR BUTLER

MR H13BERT MR FRETWELL MR HAWLEY

-2- CONFIDENTIAL