TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 57

CONFIDENTIAL

GR 363

IMMEDIATE

CYPHER/CAT A

FM UKREP BRUSSELS 081335Z

CONFIDENTIAL

HKK 121/616/1

RELEIVED IN REGJERY

- 9 NOV D17

OFSK OFFICER

INDEX

No

PA

-crop Take-

T

TO INMEDIATE FCO TELEGRAM NUMBER 6631 OF 8 NOVEMBER

TEXTILES: NEGOTIATIONS WITH HONG KONG

MY TELNO 6627

ра

(249)

(300)

1. AS AGREED IN TELECON STERN/ELLIOTT, WE LATER CONTACTED TRAN AGAIN TO CONFIRM THAT HE WAS STILL WILLING, IF HONG KONG RETURNED TO THE NEGOTIATING TABLE, TO DEPLOY SOME OF THE RESERVES SET ASIDE FOR DOMINANT SUPPLIERS IN FAVOUR OF HONG KONG. TRAN AGREED STRAIGHTAWAY ADDING THAT HE HAD ALREADY ANNOUNCED FUBLICLY (PRESUMABLY AT HIS PRESS CONFERENCE ON 4 NOVEMBER) THAT THE COMMUNITY WAS PREPARED TO OFFER FURTHER QUANTITIES TO HONG KONG ON THREE PRODUCTS.

2. ELLIOTT ACCORDINGLY TELEPHONED BURGESS IN THE HONG KONG OFFICE. HE SAID THAT HE HOPED THE HONG KONG SIDE, WHICH HAD NOW RECEIVED A FULL SET OF COMMUNITY FIGURES BROKEN DOWN BY MEMBER STATES, WOULD FIND IT POSSIBLE TO ACCEPT THE COMMUNITY'S PRODUCT CLASSIFICATION

SYSTEM - DESPITE THE ACKNOWLEDGED DIFFICULTIES THIS POSED FOR HONG KING, HE ALSO HOPED THAT, TO AVOID THE THREATENED BREAKDOWN (WHICH STILL SEEMED IMMINENT IN TRAN'S EYES), HONG KONG WOULD BE ABLE TO RESUME TALKS WITH THE COMMUNITY ON THE BASIS OF THE LATTER'S FIG-

URES. IN THAT EVENT WE HAD EVERY REASON TO BELIEVE THAT THE PUBLIC

ASSURANCES ALREADY GIVEN TO HONG KONG ABOUT FLEXIBILITY ON A NUMBER

OF KEY PRODUCTS WOULD BE HONOURED.

3. BURGESS SAID THAT HE WOULD INFORM MILLS OF THESE DEVELOPMENTS

IMMEDIATELY, BUT COULD OFFER NO PREDICTIONS ABOUT THEIR RESPONSE.

CONFIDENTIAL

/4. ELLIOTT THEN