TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 42

Community in the past. The inevitable answer to hard

pressure will 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 presentational point of view.

6.

I therefore recommend that Sir D Maitland should

have a quiet word with Commissioner Davignon, warning that

it would be a mistake to push Hong Kong too hard. In spite

of the real risks for Hong Kong if she refused to conclude

an agreement with the Community, in a situation which Hong

Kong judged desperate, she might be prepared to take that

risk. This would probably cause other suppliers to refuse

to conclude, lead to the breakdown of the Community's

approach and to imposition of unilateral measures with all

the implications that would have for world trade, particularly

for the GATT MTNs.

7.

I also recommend that we should, as he has requested,

recall the Governor of Hong Kong for consultations on this

subject, at which we can emphasise our preoccupations.

hope Edmund Dell will be able to see him.

8.

I

I am copying this minute to other members of EI`

and to Sir J Hunt.

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