TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 35

N

HKK. 121/616

13

76.61)

A

3081

00 HONG KONG

GPS 350

CYPHER/CAT A

FM FCO 082000Z NOV

CONFIDENTIAL

TO IMMEDIATE HONG KONG TELNO 858 OF 8 NOVEMBER AND TO IMMEDIATE

UKREP BRUSSELS

FOR GOVERNOR'S EYES ONLY.

PERSONAL FROM MURRAY.

FOLLOWING YOUR TELEGRAM NO 1098 AND TRAN'S LATEST PRESS STATEMENT AS IN UK REP BRUSSELS TELNO 6634, THE SITUATION IS CLEARLY WORRYING. EVENTS HAVE MOVED SO FAST THAT IT HAS NOT BEEN POSSIBLE TO GIVE MINISTERS A COMPREHENSIVE VIEW OF WHAT HAS BEEN HAPENING. BUT I BELIEVE THEY WILL BE VERY CONCERNED IF THEY CONCLUDE THAT ATTITUDES HAVE HARDENED DANGEROUSLY ON BOTH SIDES IN A SITUATION WHERE THE COMMUNITY AND HONG KONG ARE NOT VERY FAR APART ON MANY OF THE ESSENTIAL ASPECTS WHICH COULD PRODUCE AGREEMENT.

2. WE HAVE ALREADY INSTRUCTED UKREP BRUSSELS TO TRY HARD TO COOL THE ATMOSPHERE AND CONCENTRATE ATTENTION ON THE REAL POINTS OF DIFFERENCE, WHICH WE BELIEVE ARE NARROWING SUBSTANTIALLY. UNFORTUNATELY YOU CANNOT MAKE PUBLIC REFERENCE TO THIS ACTION ON OUR PART SINCE IF IT BECAME KNOWN IT COULD SERIOUSLY COMPROMISE OUR POSITION IN THE COMMUNITY.

3. NEITHER TRAN'S PRESS CONFERENCE ON 4 NOVEMBER NOR HIS PRESS STATEMENT ON 8 NOVEMBER WAS MADE WITH THE APPROVAL OF THE GOVERNMENT OR OF OTHER MEMBER STATES, IT IS A MATTER WHICH IS ENTIRELY WITHIN THE COMPETENCE OF THE COMMISSION AS THE COMMUNITY'S NEGOTIATOR AND HE IS NOT OBLIGED TO SEEK CLEARANCE, THE O NOVEMBER STATEMENT AT LEAST LEAVES DOURS OPEN FOR A RESUMPTION.

ir.