TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 50

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386

EN CLAIR

FM HONG KONG #50925Z

UNCLASSIFIED

TO ROUTINE F C O TELNO 1228 OF 5 DECEMBER 1977.

MIPT

BEGINS

385

$

THE ACTING DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS,

MR BILL DORWARD, HAS ANNOUNCED THAT HONG KONG AND THE EEC INITIALLED AN AGREEMENT IN BRUSSELS EARLY THIS MORNING RESTRAINING THE EXPORTS OF TEXTILES AND CLOTHING FROM HONG KONG FOR THE

NEXT FIVE YEARS. FULL DETAILS WERE NOT IMMEDIATELY AVAILABLE

BUT ARE EXPECTED SOON.

MR DORWARD SAID THAT THIS WAS THE CULMINATION OF NEGOTIATIONS BEGUN IN MID-OCTOBER AND RECESSED FOR ONLY A

LITTLE OVER ONE WEEK IN EARLY NOVEMBER.

SOURCES CLOSE TO THE DEPARTMENT SAID THAT THE AGREEMENT

IS THE MOST RESTRICTIVE HONG KONG HAS EVER ACCEPTED. IT WAS IN THEORY NEGOTIATED UNDER THE TERMS OF THE GATT MULTI-FIBRE ARRANGEMENT (MFA). BUT, FROM AN EARLY STAGE, INDEED SOME MONTHS BEFORE THE NEGOTIATIONS PROPER BEGAN, THE EEC PUBLICLY MADE IT CLEAR THAT THEY HAD NO INTENTION OF ACKNOWLEDGING OBLIGATIONS UNDER THE MFA WHICH DID NOT SUIT

THEIR INCREASINGLY PROTECTIONIST POLICIES.

THE SOURCES ADDED THAT THE COURSE OF THE NEGOTIATIONS WAS

MARKED BY FREQUENT PUBLIC THREATS BY EEC NEGOTIATORS AIMED AT

INTIMIDATING HONG KONG AND OTHER EXPORTERS WHO SOUGHT NO MORE

THAN THEIR FREELY NEGOTIATED RIGHTS UNDER THE MFA.

/COMMENTING ON