R 1100
IMMEDIATE
CONFIDENTIAL
CYPHER/CAT A
FM UKREP BRUSSELS 092705Z
CONFIDENTIAL
HKK 121/616/1 1616/1
RE DIVED IN R* * 5:17 ko.
9 NOV 17
*..
TRY
PA
CRO Taken
No-Beve
FRAME EXTERNAL
ра
298
DESKBY C81000Z
TO IMMEDIATE FCO TELEGRAM NUMBER 6616 OF 8 NOVEMBER
TEXTILES: NEGOTIATIONS WITH HONG KONG
4 - 7 NOVEMBER
SUMMARY
LAST
299
1. HONG KONG PRODUCED A PACKAGE OF DETAILED PROPOSALS WHICH WAS REJ- ECTED BY THE COMMUNITY. WE CONTINUE TO INSIST THAT OUR FIGURES AND CATEGORIZATION FORM THE BASIS OF NEGOTIATIONS, BUT TO OFFER CONCESS- IONS ON THE PRINCIPLE OF EXPORT AUTHORIZATION. PRESENT POSITIONS OFFER NO VISIBLE PROSPECT OF PROGRESS BEFORE THE COMMUNITY'S 10 NOVEMBER DEADLINE EXPIRES: BUT THE HONG KONG'S DELEGATION INSTRUCT-
IONS APPEAR TO CONTAIN LITTLE FLEXIBILITY.
DISCUSSIONS
2. LATE ON FRIDAY EVENING THE HONG KONG DELEGATION PRESENTED THE COM- MUNITY WITH A LONG DOCUMENT (COPIES NOW IN WHITEHALL) WHICH THEY SAID REPRESENTED THE FURTHEST THEY COULD GO. THIS WAS INTENDED AS A PACKAGE AND INCLUDED THE HONG KONG REDRAFT OF A MODEL AGREEMENT, TO WHICH WERE ANNEXED DETAILED FIGURES (APPROVED BY THEIR TEXTILES ADVISORY BOARD) FOR PRODUCTS CATEGORIZED ACCORDING TO THE HONG KONG SYSTEM RATHER THAN IN THE SIX GROUPS NOW BEING USED BY THE COMMUNITY.
3. HAVING CONSIDERED THIS DOCUMENT OVER THE WEEKEND BECK (COMMISSION) TOLD THE HONG KONG DELEGATION ON MONDAY MORNING THAT WE COULD (NOT) ACCEPT IT AS A PACKAGE. THE COMMUNITY WERE WILLING TO CONSIDER HONG KONG'S WISH FOR AN AGREEMENT WHICH INCORPORATED AN EXPORT CON- TROL SYSTEM, BUT THE OTHER ELEMENTS OF THIS PACKAGE WOULD NOT DO.
THE COMMUNITY'S OBJECTIONS FELL UNDER THREE HEADINGS:
CONFIDENTIAL
/A.
THE
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