TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 144

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SETTLING ON THE COMMUNITY'S TERMS EVEN IF THAT MEANT SUFFERING IN THEIR ACCESS TO THE EEC MARKET. SIR LEO CONSIDERED THAT SUCH AN OUTCOME WOULD BE A POLITICAL DISASTER, WHILE' RECOGNISING HONG KONG'S DIFFICULTY, HE STRONGLY URGED THAT THEY SHOULD STAY AT THE NEGOTIATING TABLE AND SETTLE FOR THE BEST OFFER WHICH THEY COULD GET FROM THE COMMUNITY, EVEN IF THEY HAD TO REGISTER A PUBLIC PROTEST AT THE TERMS. THE ALTERNATIVE OF UNILATERAL MEASURES COULD BE VERY MUCH WORSE. WE CONFIRMED TO THE GOVERNOR THAT THE COMMUNITY DID HAVE LIMITED FLEXIBILITY ON SOME PRODUCTS, BUT MADE IT QUITE CLEAR THAT THIS WOULD NOT INCREASE THE OFFER UP TO 1976 LEVELS. THE GOVERNOR SAID HE UNDERSTOOD THIS. FINALLY SIR LEO SAID WE WOULD CONTINUE TO DO ALL WE COULD TO KEEP THE COMMISSION TO DAVIGNON'S ASSURANCES TO THE SECRETARY OF STATE ABOUT NO FURTHER CUTBACKS.

OWEN

FILES

EID (E) HK & GD

MR FRETWELL

MR MURRAY

COPIES TO:

MISS A MACFARLANE CRE1 DOT.

PS/SIR LEO PLIATZKY DOT

MISS L LOWE CT DIVN DOI

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