TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 194

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[Mr. Steam to

> Mr Stewart

kui trapse

сарувонк

Spoken to Moo Stewart.

In view of MKS latest tel. this is not to be sent

GHK.

ов

प्रकर

2

25-22111!

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DESK BY 18150WZ

TO IMMEDIATE F C O TELEGRAM NUMBER 6996 OF 18 NOVEMBER

INFO ROUTINE UKMIS GENEVA,

HONG KONG TELNO 1151 TO F.C 0: TEXTILES

1. TRAN WAS REPLYING TO A DIRECT QUESTION FROM A REPORTER. GIVEN HIS PREVIOUS PUBLIC STATEMENTS IN THIS VER, IT IS DIFFICULT TO SEE HOW HE COULD HAVE SAID LESS IF ANY CREDIBILITY IS TO ATTACH TO THE COMMISSION'S NEGOTIATING STRATEGY. IT APPEARS, MOREOVER, THAT MR DAVIGNON'S ASSURANCE TO MR DELL HAD NOT AT THAT STAGE FILTERED DOWN TO TRAN.

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2. THAT SAID, THE COMMISSION TOLD US YESTERDAY EVENING IN CONFIDENCE THAT SINCE MR DAVIGNON SAW MR DELL, THE QUANTITIES EARMARKED FOR HONG KONG IN THE COMMUNITY'S ORIGINAL OFFER

HAVE NOT BEEN CONSCIOUSLY REDUCED. PRIOR TO THAT THE COMMISSION HAD DECIDED TO USE EPO-GON TOWNES OF HONG KONG'S ALLOCATION OF COTTON FABRIC TO KEEP OTHER SUPPLIERS AT THE TABLE. BUT THEY APPEAR CONFIDENT (THOUGH MATUPALLY UNWILLING TO MAKE ANY FIPM ASSURANCES TO THIS EFFECT) THAT, IF NEGOTIATIONS COULD RESUME SOON IT WOULD RE POSSIBLE TO OFFER SOME COMPENSATION ON OTHER

PRODUCTS WHICH MIGHT IN PRACTICE BE MORE USEFUL TO HONG KONG

THAN COTTON CLOTH.