TNAG-0762-FCO40-966-Effect-of-GATT-Multi-Fibre-Arrangement-(MFA)-on-Hong-Kong-ex-1978 — Page 13

RESTRICTED

TN(T)(78)1

February, 1978

GATT MULTILATERAL TRADE NEGOTIATIONS (MTNS)

CONSULTATION WITH INDUSTRY

I circulated on 17 November last a minute enclosing a note which sponsoring divisions were asked to send out to industry.

2.

Much water has flowed under Westminster Bridge since then and I now enclose a further note which you are similarly invited to send out. I have been in touch with many divisions over the last few days about the difficult task of evaluating US and Japanese tariff offers and in considering the case particular industries may have for being excepted from tariff cuts in the light of these offers. Similar discussions have been taking place within MAFF on the agri- cultural sector. Our problem now is that we do want to ensure that industry as a whole has no reason at all to feel that it has not been fully consulted on these questions and yet we would like to avoid involving ourselves or you in a mighty flood of correspondence and a host of meetings. A further problem is that we cannot at this point in time formally consult industry about a list of exceptions; we have had a tentative list for some weeks but we cannot finalise it until work on the US and Japanese offers has been carried further forward. We should like you to make particular efforts to ensure that anyone who may later have a grouse that he was not consulted gets both our last note and this one.

3. We propose to supplement what we are doing with a further article in Trade and Industry to supplement the one in the issue of 27 January and with further contact with the CBI and the TUC.

4.

The Department of Trade are anxious that substantial industries with a point of view to put to us, or even relatively small ones, should have the chance, should they wish it, of direct contact with the Department of Trade. The meetings could as appropriate be with Mr. Gray as the senior official who overscas the negotiations or with

Do bear in me as the person in charge of the more detailed work. mind too that your own or industries' questions on tariff aspects can go to Mr. J. H. Clement on 215 5438, questions on non tariff barriers to Mr. A. W. Dell on 215 5432 and on the way in which agriculture fits in to the whole picture as the Department of Trade sees it to Mr. J. Cumming on 215 5440; the contacts in MAFF on the MTNs are Mr. J. C. Edwards on 839 7711 Extn: 206 and Mr. J. Harvey on 839 7711 Extn: 552.

T. Sharp CRE1

14 February, 1978