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4. THERE IS NO ALTERNATIVE, IN THE CIRCUMSTANCES, BUT TO ASK WHETHER TRAN'S STATEMENTS WERE MADE WITH THE MEMBER STATES' CONCURRENCE INCLUDING THE UK'S. IT IS A QUESTION WHICH IS BOUND TO BE ASKED HERE AND WE MUST BE IN A POSITION TO ANSWER. THE ULTIMATUM TRAN DELIVERED COLOURS ALL ELSE AND, IF IT WAS MADE WITH THE FULL BACKING OF THE MEMBERS STATES, THERE IS LITTLE POINT IN OUR ATTEMPTING TO CONTINUE WITH THE PROCESS OF NEGOTIATION. IF IT WAS NOT THEN, AT THE VERY LEAST, WE SHOULD BE AUTHORISED TO SAY SOMETHING HERE TO THE EFFECT THAT HMG WOULD PRESS IN BRUSSELS FOR A FULL AND DETAILED CONSIDERATION OF THE LATEST HONG KONG PROPOSALS. (THE RESPONSE TO OUR PROPOSALS DUE TO BE MADE AT 1000 HOURS THIS MORNING MUST, THEREFORE, NOT BE PRECIPITOUS).
5. IN THE EXPECTATION THAT YOU WILL SEE YOUR WAY TO AGREEING TO THIS REQUEST, THE FOLLOWING IS THE ELABORATION WE HAD INTENDED TO PUT TO YOU BEFORE SEEING TRAN'S STATEMENTS,
6. AS WE SAID IN PARAGRAPH 1 OF OUR TUR, WE HAVE BEEN CONCERNED AT THE LACK OF PROGRESS IN THESE NEGOTIATIONS IN WHICH WE HAD BEEN ASKED TO AGREE RESTRAINTS ON EXPORTS OF PRODUCTS WHICH WE CANNOT
DEFINE TO LIMITS WHICH WE CANNOT DETERMINE.
7. THIS LACK OF PROGRESS STEMS, IN OUR VIEW, FROM
(A) THE EEC'S ATTEMPT TO CUT OUR TRADE BACK WELL BELOW 1976 IMPORT LEVELS:
(B) THE IMPRECISION AND INCOMPLETENESS OF THE EEC PROPOSALS SO FAR PUT TO HONG KONG:
C) THE EEC'S PROPOSED NEW CATEGORISATION WHICH WE BELIEVE WOULD CREATE ENORMOUS DIFFICULTIES FOR COMMUNITY IMPORTERS AS WELL AS HONG KONG EXPORTERS, NOT TO MENTION FOR US IN IMPLEMENTING ANY AGREEMENT:
(D) THE NUMEROUS PROVISIONS IN THE DRAFT AGREEMENT WHICH COULD MADE NUGATORY ANY THEORETICAL PROVISION FOR EXPORT CONTROL.
8. THE HONG KONG TEAM, THEREFORE, PUT FORWARD A PACKAGE PROPOSAL WHICH WE INTEND AS A MEANS TO BREAK THE IMPASSE WHICH HAD BEEN REACHED. WE DID THIS EVEN THOUGH THE COMMUNITY HAS NOT ITSELF PUT FORWARD ANY OBJECTIVE JUSTIFICATION FOR THEIR PROPOSALS.
S. WE HAVE DECIDED TO TAKE THIS SINGLE STRIDE BACKWARDS AND NOT
FALL BACK STEP BY STEP, IN ORDER TO MEET THE COMMUNITY AS FAR AS
WE CAN. THE HONG KONG PROPOSALS MEET COMPLETELY THE EEC
''STABILISATION'' REQUIREMENT IN SO FAR AS IT APPLIES TO HONG KONG,
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