TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 53

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TO IMMEDIATE F C O TELNO 1116 OF 9 NOVEMBER 1977 No

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9 NOV 19/7

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INFO IMMEDIATE BRUSSELS ( FOR BURGESS ), UKMIS GENEVA (FOR TSAO) HONG KONG GOVERNMENT OFFICE LONDON, PRIORITY WASHINGTON (FOR CROWSON)

YOUR TELNO 854 OF 7 NOVEMBER: EEC TEXTILES

ki

(305)

I SHALL BE TELEGRAPHING LATER TODAY ABOUT THE SITUATION REPORTED IN UKREP BRUSSELS TELNO 6634 TO YOU, REPEATED TO ME, BUT, MEANWHILE, WITH REFERENCE TO THE PROPOSED REPLY TO SIR ANTHONY ROYLE'S QUESTION, I THINK YOU SHOULD KNOW THAT:

(A) NOT ONLY HAS OUR PROPOSAL BEEN REJECTED ON THE SOLE GROUNDS THAT WE HAVE NOT, IN ADDITION TO MEETING THE COMMUNITY'S STABILISATION REQUIREMENT (AS HAS BEEN ACKNOWLEDGED), OFFERED THE 'SACRIFICES' EXPECTED OF PRINCIPAL SUPPLIERS:

(B) BUT ALSO, AND THIS IS A POINT I THINK YOU SHOULD BE AWARE OF IMMEDIATELY, WE HAVE BEEN GIVEN AN ULTIMATUM TO THE FOLLOWING EFFECT, VIZ: THAT UNLESS WE ENTER INTO DISCUSSIONS BY THE END OF THIS WEEK ON THE BASIS OF THE COMMUNITY'S PROPOSALS, WHICH ARE STILL ANYWAY INCOMPLETE, THE FIGURES IN THESE PROPOSALS WILL BE REDUCED BY TEN PERCENT FOR EVERY WEEK THAT WE DELAY: AND THAT, IF WE DO NOT IN THE END REACH AGREEMENT ON THE BASIS OF THE COMMUNITY'S PROPOSALS, THEY WILL INTRODUCE AUTONOMOUS MEASURES'' OF IMPORT RESTRICTION.

2. AS IT WAS SUGGESTED BY TRAN AT HIS PRESS CONFERENCE ON

4 NOVEMBER THAT HONG KONG HAS BEEN DRAGGING ITS FEET, I THINK YOU SHOULD ALSO BE AWARE OF THE FOLLOWING FACTS:

(A) THE HONG KONG DELEGATION WAS IN BRUSSELS ON 10 OCTOBER,

THE DATE NOMINATED BY THE COMMUNITY: BUT

(B) NEGOTIATIONS DID NOT BEGIN UNTIL ONE WEEK LATER:

(C) ON 4 NOVEMBER, THAT IS THREE WORKING WEEKS AFTER THE ACTUAL START OF THE NEGOTIATIONS, THE COMMUNITY HAD STILL NOT PRESENTED ITS SPECIFIC PROPOSALS:

(D) PRIOR TO 4 NOVEMBER, THE NEGOTIATIONS WERE RECESSED FOR NEARLY A WEEK AT THE COMMUNITY'S REQUEST

COMMUNITY'S REQUEST (PARTLY BECAUSE OF ALL SAINTS DAY, AND PARTLY TO SUIT TRAN'S OWN CONVENIENCE, HE HAD PERSONAL BUSINESS IN PARIS). MACLE HOSE

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