TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 70

2. THE SITUATION NOW FACING US IS PARTICULARLY DISTURBING INASMUCH AS 75 PER CENT OF OUR EXPORTS OF COTTON FABRICS. TO THE E.E.C GO TO THE U.K. THIS FACT,

THIS FACT, AND THE FACT THAT THE COMMUNITY RESTRAINT LIMIT BEING PROPOSED FOR CATEGORY 2 IS SUBSTANTIALLY LOWER THAN THE FIRST SUCH LIMIT AGREED BY HONG KONG FOR THE U.K ALONE IN 1959 - REPEAT 1959 - MAKES IT DIFFICULT FOR US TO AVOID CONCLUDING THAT H.M.G IS THE PRIME MOVER IN THIS PUNITIVE ACTION AGAINST THE HONG KONG WEAVING AND FINISHING INDUSTRY. IT IS EVEN MORE DIFFICULT FOR US TO AVOID THIS CONCLUSION IN THE ABSENCE OF A REPLY TO OUR TEL NO.1982 OF 2 NOVEMBER WHICH SET OUT THE HISTORY OF RESTRAINTS ON COTTON FABRICS AT SOME LENGTH. EVEN IF H.M.G DID NOT ACTUALLY INITIATE THIS LATEST MOVE, IT IS DIFFICULT FOR US NOT TO CONCLUDE THAT THE MOVE HAS H.M.G'S

SUPPORT.

3. WE SHOULD BE GRATEFUL, THEREFORE, FOR YOUR ASSURANCE THAT,

GIVEN:

(A)

THE DAMAGE THIS MOVE WILL HAVE ON HONG KONG AND ON HONG KONG/U.K RELATIONS: AND

(B) THE FACT THAT THE U.K WEAVING AND FINISHING INDUSTRY HAS ALREADY HAD AN 18-YEAR BREATHING SPACE UNDER RESTRAINT AGREEMENTS ENTERED INTO AND RESPECTED BY HONG KONG:

YOU WILL BRING YOUR INFLUENCE TO BEAR TO HAVE THE COMMUNITY'S NEGOTIATORS WITHDRAW THE REQUEST FOR SUB-LIMITS ON BOTH CATEGORIES 2 AND 3 SO THAT MEANINGFUL NEGOTIATIONS ON RESTRAINT LIMITS FOR THESE CATEGORIES CAN BE RESUMED.

ROBERTS

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