359
GRS415
MEDIATE
CYPHER CAT A AND BY BAG
FM F C O 241319Z
CONFIDENTIAL
CONFIDENTIAL
HKK 121
"No
2.
116.6/1
PABIL
TO IMMEDIATE UKREP BRUSSELS TELNO 2187 OF 24 NOVEMBER, 1977, AND TO PRIORITY WASHINGTON AND UKMIS GENEVA,
INFO SAVING BTC HONG KONG.
HONG KONG TEXTILES.
Ref
360)
A
THE GOVERNOR OF HONG KONG CALLED ON SIR LEO PLIATZKY THIS MORNING TO DISCUSS THE TEXTILE NEGOTIATIONS. HE WAS ACCOMPANIED BY BRAY (HONG KONG COMMISSIONER IN LONDON)..
2. THE GOVERNOR ASKED FIRST WHAT HAD HAPPENED AT THE COUNCIL. WE SAID THE COMMISSION HAD ANNOUNCED THE RETURN OF THE HONG
KONG NEGOTIATING TEAM, WHICH THE SECRETARY OF STATE HAD WELCOMED. THE GOVERNOR THEN RAISED THE THREE POINTS OF MOST CONCERN TO HIM:- (A) EXPORT CONTROL OF QUOTAS: (B) NEW PRODUCT CLASSIFICATION: AND (C) THE PROPOSED FIGURES FOR GROUP | QUOTAS,
3. WE REFERRED TO THE PERSONAL ASSURANCES GIVEN BY MR JUDD (TO HONG KONG) ABOUT POINTS (A) AND (B). AS FAR AS WE KNEW, THE QUESTION OF EXPORT CONTROL HAD NEVER BEEN SERIOUSLY IN DOUBT. THE COMMUNITY WERE ALSO DISCUSSING THE QUESTION OF TRANSITIONAL ARRANGEMENTS TO COVER THE FIRST FEW MONTHS OF THE IMPLEMENTATION OF ANY NEW AGREEMENTS. NO FINAL DECISIONS HAD BEEN TAKEN, AND IT WAS NOT CLEAR WHETHER SUCH ARRANGEMENTS WOULD APPLY TO ALL SUPPLYING COUNTRIES. HOWEVER, SIR LEO SAID WE WOULD DO ALL WE COULD TO SEE THAT THERE WERE NO DIFFICULTIES OVER THESE TECHNICAL POINTS.
4. ON THE QUESTION OF FIGURES, THE GOVERNOR ARGUED THAT IF HONG KONG SIGNED AN AGREEMENT ON THE COMMUNITY'S TERMS, THE US WOULD REOPEN THEIR AGREEMENT AND HONG KONG WOULD FIND ITS ACCESS REDUCED IN ALL ITS EXPORT MARKETS. THE AMOUNTS INVOLVED IN OTHER MARKETS COULD BE SO LARGE AS TO PRECLUDE HONG KONG FROM
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CONFIDENTIAL
SETTLING ON THE
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