3
12.
It seems that in making these demands the FEC is in
effect saying that it has no intention of abiding by some of
the most fundamental rules of the FA, but is trying to achieve
in bilateral negotiations that which it could not achieve in
the multilateral forum.
13.
Hong Kong believes that these proposals are not
only objectionable in principle but also unsound in practical
application. Although Hong Kong's textiles and clothing exports
to the EEC have declined in 1977, this is no reason to deny
the trade the possibility of future recovery. If this is denied
while demand revives, the trade is much more likely to go to the developed (unrestrained) suppliers than to Hong Kong.
14.
Another objection is that the proposed cutbacks would
in respect of each item be applied equally to each of the
Kember States, regardless of the facts of the market situation
in each.
15.
Hong Kong's views on the grounds that have been put
forward to justify the discriminatory application of cutbacks
to only some principal suppliers are set out in a separate
paper.
Hong Kong
October 1977
Ref. CR/EIC 230/5/12/4 II
No comments yet.
Private notes are available after approval.