TNAG-1140-FCO40-1420-Quarterly-progress-reports-on-Hong-Kong-1982 — Page 31

Trade and Industry Branch Progress Report

(NB

1 August 31 October 1982

: Trade and Industry Branch was

established on 1 August 1982, and took on responsibility for most trade and industry related issues previously handled by Economic Services Branch

-

in whose progress reports these subjects were previously covered.)

Subject

Trade

Purpose

1. Textile negotiations To negotiate a

with the EEC

satisfactory

textiles

agreement with

the EEC, to

succeed the

current

agreement which

will expire on

31 December 1982

Progress made and present position

Next quarter target

The first formal round of hegotiations

held in Brussels in June was

inconclusive. A second round was held

in Brussels from 15 to 27 September,

with the Hong Kong delegation

accompanied by the full Textiles

Advisory Board. The EEC is seeking

cutbacks (10-12%), close-tb-zero

growth rate, elimination of or

reduction in flexibility, re-

categorisation, and inclusion of an

anti-surge mechanism, an outward

processing trade system, and special

provisions for circumvention.

In the light of

developments since the

last round of

negotiations, revised negotiation instructi

are being drawn up

the

next round.

for

G.F. 326

CONFIDENTIAL # 3

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