TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 181

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TO IMMEDIATE F C O TELNO 1174 OF 20 NOVEMBER 1977

INFO IMMEDIATE UKREP BRUSSELS, BRUSSELS (FOR BURGESS), HONG KONG GOVERNMENT OFFICE LONDON.

YOUR TELNO 898 TJ ME: EEC/HK TEXTILES.

1. IN ACCORDANCE WITH THE ADVICE IN PARA 5 OF YOUR TUR WE SEEK

NO FURTHER FORMAL PRE-CONDITIONS FROM THE COMMISSION.

2. WE NOTE WITH GRATITUDE THE ASSURANCES GIVEN IN PARAGRAPHS.6

AND 7, (FIRST SENTENCE), OF YOUR TUR AND PARAGRAPH 8 OF YOUR TEL 068, THAT IS TO SAY:

(A) HMG WILL DO EVERYTHING POSSIBLE TO SALVAGE WHAT CAN BE

OBTAINED FOR HONG KONG: AND

(B) HMG IS SATISFIED THAT THE COMMUNITY WILL PROVIDE FOR ADEQUATE

TRANSITIONAL ARRANGEMENTS ON THEIR CATEGORISATION AND WILL GIVE

US THE ASSURANCE WE NEED ON EXPORT CONTROL:

(C) DAVIGNON'S ASSURANCE TO MR DELL THAT THE COMMISSION WOULD NOT

PROCEED WITH THE THREATENED REDUCTION IN QUANTITIES EARMARKED

FOR HONGKONG BY THE COMMUNITY. WE AGREE, AS IN YOUR PARA 8, THAT

THE ONLY PRACTICAL OPTION IS TO RETURN TO THE NEGOTIATING TABLE

WITH THESE ASSURANCES, BUT FORMALLY WITHOUT PREJUDICE TO EITHER

PARTY.

3. AS I AM SURE YOU WILL REALISE:-

(A) WE HAVE RESPONDED IN THIS WAY IN ACCORDANCE WITH YOUR ADVICE,

BUT ALSO BECAUSE WE ARE FACED WITH WHAT WE TAKE TO BE AN ULTIMATUM

AND THE ALTERNATIVE OF AUTONOMOUS MEASURES:

(B) WE BELIEVE THE COMMUNITY'S REQUEST, AT ANY RATE AS IT STANDS, TO BE OUTSIDE THE TERMS OF THE MFA AND DOCUMENT COMTEX/W/44: (C) THESE INSTRUMENTS AND GATT ITSELF ARE ALL WE HAVE TO PROTECT

OUR INTERESTS IN THIRD COUNTRIES.

CONFIDENTIAL

/4. THEREFORE,