TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 228

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PROCEED WITH THE THREATENED REDUCTION IN QUANTITIES

EARMARKED FOR HONG KONG BY THE COMMUNITY, DAVIGNON MADE IT CLEAR, HOWEVER, THAT THIS UNDERTAKING APPLIED ONLY TO HONG KONG, NOTWITHSTANDING THIS ASSURANCE BY

M DAVIGNON I AM CONVINCED THAT ANY PROLONGED DELAY WOULD CERTAINLY BRING UP THE QUESTION OF REDISTRIBUTION ONCE AGAIN. IT WOULD ALSO INEVITABLY DIMINISH THE COMMISSION'S NEGOTIATING RESERVES WHICH WOULD HAVE BEEN ALLOCATED TO OTHER SUPPLYING COUNTRIES IN THE INTERIM.

9 OUR EXPERTS ACCEPT THAT THERE WILL BE SOME DIFFICULTIES OVER THE INTRODUCTION OF NEW PRODUCT DEFINITIONS, IE. CATEGORISATION. BUT ALL MEMBER STATES IN THE COMMUNITY HAVE AGREED THAT THESE DEFINITIONS SHOULD APPLY (NOTWITHSTANDING THE PROBLEMS THEY WILL CAUSE FOR THE MEMBER STATES THEMSELVES) BECAUSE IN THE LONG RUN THEY WILL HELP TO AVOID THE SORT OF CATEGORISATION PROBLEMS THE COMMUNITY HAS HAD IN THE PAST. ONCE THE TEETHING TROUBLES ARE OVER THEY SHOULD RUN SMOOTHLY FOR THE REST OF THE LIFE OF THE AGREEMENT. IN OUR VIEW THESE ARE QUESTIONS WHICH ARE BEST DISCUSSED ROUND THE NEGOTIATING TABLE IN BRUSSELS. WE DO NOT THINK DISCUSSION OF THIS COMPLEX TECHNICAL QUESTION WOULD BE USEFUL BETWEEN DAVID JORDAN AND SIR P CAREY OR SIR L PLIATSKY. WE BELIEVE DISCUSSIONS WITH THE COMMISSION WOULD BE MORE USEFUL.

OWEN

FILES

EID

HKG D

PS | MR JUDD.

PS / LORD GORONWY - ROBERTS

MR FRETINELL MR MURRA

MURRAY

COPIES TO

CABINET OFFICE

DOT.

MR HARRIS Miss MACFARLANE CRE (1) Miss howNE OT DIV POL.

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