TNAG-0941-FCO40-1160-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1980 — Page 60

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the 'renegotiation' was largely cosmetic and the outcome consistent

with the MFA.

5. The present MFA expires on 31 December 1981 and preliminary

manoeuvring is already taking place on the form of its successor. The

developing countries, including Hong Kong, are acutely aware that the

original MFA was supposed to be a temporary arrangement.

Nonetheless

they may be prepared to accept that some sort of orderly marketing

arrangement will continue to be necessary.

The Prime Minister has

said publicly that a tough successor to the MFA will be needed.

6. [Not for use]: It is far from certain whether a recession clause

will in practice prove negotiable. Even within the Community, the

Commission can be expected to be unenthusiastic while a number of

member states, notably the FRG, will be openly hostile to any attempt

to include any such concept in the EC negotiating mandate.

Hong Kong and General Department September 1980

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