TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 38

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DSK TIC

with British interests, at least to

at least to try for reasonable

treatment for Hong Kong.

Also we need to dispel any

belief in the Colony that Britain alone is responsible for

what is happening.

5. It would be hard for us to press in the Community for better treatment to be granted to Hong Kong.

There is little sympathy for the Colony there and a general belief that it has done too well out of textile

The inevitable trade with the Community in the past.

would

answer to hard pressure

be that the UK should

provide for Hong Kong by increasing the UK's global

ceiling to take extra imports.

This of course would not be

acceptable.

However I think we should do what we can

to meet the Governor's concern, if only from a presentat-

ional point of view.

6.

I therefore recommend that Sir D Maitland should have a word with Commissioner Davignon, warning that it

In spite would be a mistake to push Hong Kong too hard. of the real risks for Hong Kong if it refused to conclude an agreement with the Community, in a situation which Hong Kong judged desperate, it might be prepared to take that risk. This would probably cause other suppliers to refuse to conclude, lead to the breakdown of the Community' approach and to imposition of unilateral measures with all the implications that would have for world trade,

particularly for the GATT MINS.

7. I also recommend that we should, as he has requested, recall the Governor of Hong Kong for consultations on this subject. He will have to explain the situation

I think it will be just as to Hong Kong industry. Important, therefore, for him to show that he han

made a personal effort on Hong Kong's behalf, as it

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