TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 47

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

that Similar arguments apply to Hong Kong's textile agreements

th other developed countries. In general, I think it

must be recognised that taking the longer view over the

period 1973 to 1981 (the expected termination date of the

EEC's new bilateral agreements the Hong Kong textile

industry will be seen to have done well out of its trading

relationship with the Community.

8. From the Commission's time-table and from the very

nature of its scheme, it is clear that there will be relatively

little room for manoeuvre in the bilateral negotiations.

Nevertheless I believe that, using their normal skill, I shorld to the sudprised if

Hong Kong's negotiators will be able to push up the Community's

offer a little. But I am sure that they will have to accept

figures below 1976 sendings, and the margin for manoeuvre

will be realtively small. I accept also that HM Government

has a responsibility to present Hong Kong's case. This

we have already done in conversations with Tran. We intend

to continue pressing in Brussels at a higher level, for

some improvements in the terms to be offered to Hong Kong.

But our ministers will not agree to any arrangement which

would imply the exceeding of the global ceilings. Consequently

our margins of manoeuvre within the Community will also be

relatively small.

9.

J

I recognise that this will be a bitter pill for Hong Kong

to swallow, but I believe, for the reasons set out above that

it is necessary for Hong Kong to make sacrifices of this

order. I also understand the problems you will have in

convincing Hong Kong's opinion of this necessity.

With this

in mind, I therefore see great value in an early visit to

London where I hope you will have the opportunity to meet FC Ministers and

fully work while

272

Towers,

Mr Dell. I do not believe that such a visit will be valuabl

util we have the Commission's full breakdown of quota

figures across all the supplying countries. you should aim at a visit towards the end of next week and

I think therefore

/ I

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