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fully support this important plank in the proposals.
3.
In effecting a stabilisation at 1976 levels it is necessary
to leave some room for newcomers and small suppliers. Moreover the
Commission have started from the premise, which it is hard to deny,
that the poorest developing countries, especially India and Pakistan,
cannot be expected to take cuts below the level of their 1976
exports to the Community. Hence logic has led the Commission
to conclude that some cut-back below 1976 levels will have to be
made for the "dominant" suppliers, Hong Kong, South Korea and Taiwan.
The figures show that these three will at least suffer proportionately
similar cutbacks though Taiwan is to be treated a little more harshly.
We are sure, however that there will be some scope for the Hong
Kong negotiators to obtain some improvements. But I do not think
they will be able to attain 1976 figures.
UK/Hong Kong Interests
4.
Our overriding concern will be the maintenance of global
import ceilings, especially for the eight products identified as
"highly sensitive". At the same time, we recognise that we have
a duty to protect the interests of Hong Kong, in view of its
dependent status and, at least, to try for reasonable treatment
for Hong Kong. FCO officials argued Hong Kong's case with Mr Tran
when he was in London on 9 September. The Governor's proposed visit
to Brussels will provide an opportunity to put forward Hong Kong's
case at the highest level in the Commission. Hong Kong must
understand, however, that there is little sympathy for their case in
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