TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 91

BRIEF 13

BRIEF FOR MINISTER FOR TRADE'S VISIT TO HONG KONG

30 AUGUST

SAFEGUARDS

BACKGROUND

1

5 SEPTEMBER 1980

Following the failure to reach agreement on the new safeguards code as part of the multilateral trade negotiations, negotiations continue in the GATT forum. So far these have not been renewed with much vigour and it has been agreed to extend them into the autumn. We are relieved about this because the subject features on the agenda of the trade section of the global negotiations in New York

and we

are anxious that discussions should not be transferred into

that forum.

2

Hong Kong was previously a leading developing country proponent in the negotiations when Mr Peter Chao led the Hong Kong mission in Geneva. Their line was bitter opposition to selectivity and a determination to get the maximum control on all safeguard actions. Since Mr Chao's departure from Geneva, there has been less direct Hong Kong intervention there; but it is assumed that the stand of the Hong Kong Government remains essentially as before.

3

On points of substance, the UK line also remains the same as before. We consider it necessary to secure recognition that safeguard action may be taken on a selective basis when appropriate. At the same time we are prepared to see more criteria for all safeguard actions though in all cases we consider it must be possible for a sovereign government to take any retaliating action which it considers most appropriate to defend its industry.

CRE 1/1A

11 August 1980