GR 415
IMMEDIATE
CYPHER/CAT A
FM HONG KONG 160723Z
CONFIDENTIAL
CONFIDENTIAL
TO IMMEDIATE F.C.O TELNO.1147 OF 16 NOVEMBER,.
INFO IMMEDIATE UKREP BRUSSELS.
FOR MR JUDD FROM GOVERNOR.
YOUR TELNO.868: E.E.C/HONG KONG TEXTILES.
Copies...
3327
c. Rr Cortazzi.
Vxla.
336
1. / MUST CONSULT THE TEXTILE ADVISORY BOARD AND THE EXECUTIVE COUNCIL AND WILL SUBSEQUENTLY TELEGRAPH. BUT IN ADVANCE OF THEIR ADVICE I MUST WARN YOU THAT THE PROSPECTS APPEAR BLEAK.
2. WHILE FAILURE TO REACH AN AGREED SOLUTION WOULD BE VERY SERIOUS, SO WOULD BE ACCEPTANCE OF THE E.E.C'S TERMS, AND IN SPITE OF H.M.G'S EFFORTS, THE COMMISSION HAVE NOT BUDGED AN INCH ON THE SUBSTANCE OF THEIR TERMS. THEY HAVE MERELY PARTIALLY
WITHDRAWN THEIR THREATS.
2. THE COMMISSION'S POSITION IN YOUR PARA.2 REPRESENTS NO ADVANCE, SINCE THEY HAD ALREADY TOLD OUR DELEGATION THAT THEY WOULD IMPROVE THEIR OFFER IF HONG KONG ACCEPTED THE PRINCIPLE OF CUTBACKS BELOW 1976 SENDINGS.
4. ON THE OTHER HAND THE PRE-CONDITION REQUIRED OF HONG KONG BY THE COMMISSION FOR RESUMPTION OF NEGOTIATIONS (YOUR PARA.2) IS OF MAJOR SUBSTANCE AND HAS WIDE IMPLICATIONS FOR HONG KONG'S TRADE NOT ONLY WITH THE E.E.C BUT WITH OTHERS, AND FOR OTHER TEXTILE EXPORTERS, AND FOR THE FUTURE VALUE OF THE M.F.A. MOREOVER, IN SPITE OF THE FIRST SENTENCE OF YOUR PARA.3, I DOUBT WHETHER IN FACT THE COMMISSION COULD, OR WOULD, KEEP SUCH AN ASSURANCE SECRET IF HONG KONG WAS TO GIVE IT.
5. WE AGREE THAT CATEGORISATION IS BEST DISCUSSED IN BRUSSELS, BUT THIS IS WHAT WE HAVE BEEN TRYING TO DO WITH REMARKABLY LITTLE PROGRESS FOR THE LAST FIVE WEEKS (OUR DELEGATION
CONFIDENTIAL
/ATTRIBUTE
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