TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 32

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Reference

In Hellings

PS/PUSS (T)

Mr Abramson CRE 1

Mr Gaffin Inf Mr Priston

CRE 4

BBC2 TV "NEWSDAY": MFA BILATERALS WITH HONG KONG

BBC2 TV's "Newsday" programme will tomorrow run a film report from Hong Kong by Jim Biddulph. The report looks at the way Hong Kong is facing up to the threat of enforced cut-backs in their textile exports to the EEC posed by the current MFA talks.

2

Among topics covered is Hong Kong's moves towards diversification, eg into silk products (which are not covered by quotas).

3 But the main thrust of Hong Kong's complaints are voiced in a recorded interview with their Deputy Director of Trade,dMr Bill: Dorward.. Mr Dorward says that Hong Kong's attitude to the UK stance is a mixture of bemusement and irritation; bemusement because, in spite of the special relationship between the two countries, UK is party to an attempt to reduce exports vital to Hong Kong's economy; irritation because the action against Hong Kong will be of no direct benefit to the UK, as there are no proposals for an overall reduction in total imports from all sources. The action, he says, will be detrimental to consumers who have demonstrated their appetite for competitive Hong Kong products. His other main points are that the UK is under- mining Hong Kong's attempts to preserve business confidence, putting the Hong Kong economy at risk, and that the EEC's threatened unilateral action would punch holes in the disciplined framework of international trade in textiles.

4 They scheduled transmission for Thursday November 10, because that was the day Mr Tran van Thinh's first ultimatum to Hong Kong was due to expire. Yesterday's news of the suspension of the Hong Kong bilateral sine die makes a screening this week all the more topical.

5 BBC originally asked for a Minister to respond. This would have been tricky, because, having publicly supported a tough line, especially against major suppliers, a Minister might not have wished to be drawn on whether the Commission's precipitate action against Hong Kong was too tough for our liking.

6

Fortunately their programme is now too crowded with other items to allow time for an interview. BBC have therefore asked us to let them have a line of response which their link man can use to reflect HMG's stance at the end of the report.

tepians

Guy Dissen

Guy Nissen

Press Office

V/723 Ext 5995

November 9 1977

26/9/11.

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