TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 168

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CLAIR

FM HONG KONG 220435Z

UNCLASSIFIED

TO ROUTINE F C O TELNO 1185 OF 22 NOVEMBER 1977

HKK 121/616/1 24 PA No PS29/4

INFO BRUSSELS (FOR BURGESS), GENEVA (FOR TSAO), WASHINGTON

(FOR CROWSON), UKREP BRUSSELS, HONG KONG GOVERNMENT OFFICE LONDON.

LAST

HONG KONG TELNO 1174: HONG KONG/EEC TEXTILES.

#1.

Rtt

(3+1)

2. THE FOLLOWING EXTRACT FROM THE 9 NOVEMBER ISOVE OF THE DAILY NEWS RECORD (US TEXTILE TRADE JOURNAL) IS RELEVANT TO PRESENT CONSIDERATIONS.

3. BEGINS:

IF THE EUROPEAN ECONOMIC COMMUNITY SUCCEEDS IN SLASHING TEXTILE IMPORTS FROM HONG KONG AND SOUTH KOREA, AS ITS CURRENT TOUGH NEGOTIATING POSTURE DEMANDS, US MILL MEN PROMPTLY WILL PROD FOR SIMILAR CONCESSIONS FROM THE CARTER ADMINISTRATION THE INDUSTRY'S TOP SPOKESMAN PREDICTED TUESDAY,

J

4. ROBET TIMMERMAN, PRESIDENT OF THE AMERICAN TEXTILE MANUFACTURERS INSTITUTE, COUNSELLED THAT THE NATION'S RECENTLY NEGOTIATED PACTS WITH THE TWO FAR EASTERN NATIONS SHOULD BE REOPENED FOR REVISION AND THAT US NEGOTIATORS MUST GO BACK TO

THE BARGAINING TABLE IF THE EEC WINS A BETTER DEAL.

5. ''WE CERTAINLY SHOULD BE GIVEN EQUAL TREATMENT, • TIMMERMAN DECLARED: THE US. AGREEMENTS WITH HONG KONG AND KOREA, THE LATTER STILL NOT SIGNED, CALL FOR SIZEABLE LIFETIME GROWTH AND NOTHING IN THE WAY OF CUTBACKS EVEN FOR SENSITIVE IMPORT ITEMS.

6. TIMMERMAN, WHO IS PRESIDENT OF GRANITEVILLE CO. WAS RESPONDING TO REPORTS FROM BRUSSELS OF THE EEC'S ULTIMATUM THREATENING DEEP UNILATERAL CUTS, STARTING THE END OF NOVEMBER, AGAINST RECALCITRANT SUPPLIERS.

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