TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 32

DSR 11C

Hoy Kny

funallowhood

rapid agreement to as much of their scheme as

possible. They plan to negotiate simultaneously,

batches of 7 or 8, with all the countries concerned.

in

They

are committed to reporting back on progress made to every

Foreign Affairs Counci until the matter is resolved.

Inition 13. UK Problems

There are naturally a number of points in the Commission's

approach about which we are still unhappy.

The main ones

are:

a) we need a firm commitment that the already agreed

y

Суати

policy of minimal growth on global cotton ceilings (yan and fabric). for the next two years will be put into force. The

crisis situation in the Lancashire industry

makes this essential;

b) we are unhappy about the Commission's intention

to present the totality of growth across the board as

being a level of 6% for each supplier country. We recognise

this will be a political exercise designed to persuade

the supplying countries that the Community is acting in

accordance with the present MFA. We also accept that the

6% will be granted, in most cases, on base levels well

below current sendings. But we have a problem of

presentation with our own textile industry who will look

at the 6% figure and conclude the Community has not got

them a significantly better deal;

c) we are unhappy about the severity of the cuts which

the Commission intends to impose on Hong Kong. We realise

there is little room for manoeuvre and we would not

want extra generosity to Hong Kong to put in question the

global approach. But we hope there may be room for a

little more for Hong Kong. Hong Kong may otherwise

be provoked into a refusal to cooperate.

This in turn

There are also

risks bringing down the whole approach.

important British commercial interests, 0 7/76 904 953