TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 96

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PERCENT DOWN ON E.E.C 1976 IMPORTS AND 53 PERCENT DOWN ON NOTIONAL EXTRAPOLATED 1978 LIMITS USING THE CURRENT AGREEMENT TERMS IS PRIMARILY TO SATISFY A U.K DESIRE TO DEPRIVE HONG

KONG OF TRADITIONAL TRADE AND PLACE IT IN A WORSE POSITION THAN IT WAS IN 18 YEARS AGO.

5. EVEN IF ONE GROUPS COTTON AND SYNTHETIC FABRICS TOGETHER, THE PROPOSED E.E.C LIMIT IS ONLY THE EQUIVALENT OF 149 MN SQ. YDS. NEARLY 80 PER CENT OF HONG KONG EXPORTS OF COTTON AND

SYNTHETIC FABRICS TO THE E.E.C WENT TO THE U.K IN 1976, 89. PERCENT OF 149 MN SQ YDS IS ROUGHLY 120 MN SQ YDS, AS COMPARED WITH THE 118 MN SQ YDS FOR COTTON FABRICS ALONE IN THE PRE-

SYNTHETIC DAYS OF 1959.

6. THIS DOES NOT APPEAR TO BE A CASE WHERE H.M.G CAN ATTRIBUTE

THE MANIFEST INJUSTICE TO AN E.E.C AS OPPOSED TO A U.K POSITION. IT IS, FURTHERMORE, AN EVEN MORE EXTREME EXAMPLE OF ATTEMPTED DAMAGE TO FAIR AND LONG ESTABLISHED TRADE THAN THE SWINGEING CUTBACKS OF 5.5 TO 33 PER CENT (ON 1976 IMPORT FIGURES) OR 15 TO 30 PER CENT (ON EXTRAPOLATED 1978 FIGURES) PROPOSED FOR THE OTHER SO-CALLED 'POLITICALLY AND ECONOMICALLY SENSITIVE' PRODUCTS.

7. WE SHOULD BE GRATEFUL, THEREFORE, IF YOU WOULD DRAW THE FOREGOING TO THE ATTENTION OF THOSE RESPONSIBLE FOR INSTRUCTING THE BRITISH REPRESENTATIVES IN BRUSSELS, FOR WE ARE FACED WITH A SITUATION WHICH COULD BE EVEN MORE DAMAGING TO HONG KONG/U.K RELATIONS THAN THE GENERAL UNREASONABLENESS OF THE CURRENT E.E.C ATTITUDE.

MACLEHOSE

FILES

HK & GD (5) EID

MR HIBBERT MR FRETWELL

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