IS NO INDICATION WHATEVER OF ANY SUB-LIMITS WITHIN CATEGORIES 2 AND 3. AT A FORMAL SESSION ON 8 NOVEMBER THE COMMISSION CONFIRMED THAT IT HAD COMPLETED ITS PROPOSALS ON THE LIMITS, UNTIL YESTERDAY NO MENTION WHATEVER HAD BEEN MADE BY ANY COMMUNITY REPRESENTATIVE IN ANY DISCUSSIONS FORMAL OR INFORMAL OF ANY PROPOSAL FOR A SUB- LIMIT IN EITHER OF CATEGORIES 2 OR 3.
7. WE HAD UNDERSTOOD THAT, IN SOME COMPENSATION FOR THE SHARP CUTBACK ON COTTON FABRICS, WE WERE BEING OFFERED SLIGHTLY LESS RESTRICTIVE CONTROL ARRANGEMENTS THAN WE HAVE UNDER THE CURRENT AGREEMENT. THE LATEST PROPOSITION IS THAT, IN ADDITION TO THE CUTBACK, WE SHOULD HAVE EVEN MORE RESTRICTIVE ARRANGEMENTS THAN WE HAVE UNDER THE CURRENT AGREEMENT FOR THE USE OF OUR LIMITED EXPORT OPPORTUNITIES.
6.
THIS DEVELOPMENT IS NOT ONLY A SETBACK TO US. IT IS A SETBACK TO THE WHOLE IDEA OF NEGOTIATION. WE CAN NOW HAVE NO CONFIDENCE THAT ANYTHING THE COMMUNITY HAS SAID CAN BE RELIED ON.
THIS HAS
9. OUR ADVISERS HAVE ALREADY REACTED MORE ADVERSELY TO THE SHARP CUTBACKS ON COTTON FABRICS THAN TO ANYTHING ELSE THAT THE COMMUNITY INTENDS TO IMPOSE ON US (EXCEPT PERHAPS THE PROPOSAL ON TROUSERS WHICH HAS REPERCUSSIONS FOR THE WHOLE TEXTILE INDUSTRY FROM SPINNING THROUGH WEAVING TO GARMENT MANUFACTURE). BEEN DISCUSSED IN PREVIOUS TELEGRAMS. THIS NEWEST PROPOSAL ADDS NOT INSULT BUT INJURY TO INJURY. EVEN IF THE PROPOSAL WAS NOT ORIGINATED BY THE U.K., IF IT IS PROCEEDED WITH IT WILL AFFECT PRINCIPALLY OUR EXPORTS TO THE U.K. IT SEEMS HARDLY NECESSARY TO REPEAT THE EFFECTS THIS IS LIKELY TO HAVE IN HONG KONG.
ENDS.
FCO PLEASE PASS TO HONG KONG
FCO PLEASE PASS TO HONG KONG GOVERNMENT OFFICE LONDON.
MUIRHEAD
[ PASSED BY
COD]
FILES
EID (E)
HKJG D
PS/LORD GORONWY ROBERTS
PSI MR JUDD
MR FRETWELL- MR CORTAZZI
MRTHOMAS
3
COPIES то
HONG KONG GOVERNMENT OFFICE.
LONDON
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