4
16.
With the exception of trade in counterfeit goods, the Hong Kong Government has not yet taken a position on the US proposals. One of the difficulties in dealing with these other subjects is that the Americans have not been very specific about what exactly they are talking about when they refer, for example, to trade in services. But in any case, at the time these notes are being written, it is difficult to see how Hong Kong's interests would be advanced or harmed by a decision either way in respect of these subjects. One thing is clear, however. The Americans have done nothing to merit our support. They cannot continue to treat us very badly in textiles, which is the life- blood of our economy, and at the same time expect us to support them when they choose to represent themselves as the champion free trade and free competition in other areas.
17.
of
On trade in counterfeit goods, Hong Kong has made clear its position that it is determined to do its best to put a stop to such trade, that it can accept the proposed agreement, but that it sees no reason why it should do so in the face of total LDC opposition to such an agreement and very little or no support by developed countries other than the USA and the EEC.
18.
Another subject of interest to Hong Kong which the Ministerial Meeting will discuss is safeguards. Dunkel, the Director-General of the GATT, is at present taking soundings among delegation in order to find out whether he should make an all-out effort between now and November to get an agreement ready for ministers' approval. Hong Kong's position remains unchanged from that set out in paragraph 11 above.
The MFA negotiations and their aftermath
19.
Coordination and cooperation among the LDCs reached a high point during the MFA negotiations concluded in December 1981. Through a series of coordination meetings held respectively in Bo ota, Jakarta, Hong Kong and Delhi, they were able to agree on common positions and as a result had greater negotiating strength than in previous textiles negotiations.
20.
The Protocol extending the MFA for a further period until 1986 can hardly be regarded as a victory for the LDCs. The results. can only be regarded as a further defeat for free trade and non- discrimination. But the LDCs did manage to prevent some of the most restrictive and most unreasonable demands of the developed countries, especially those of the EEC, from being written into the Protocol. Notwithstanding this, they have had to accept. compromises in the Protocol which could be used by the importing countries to extract concessions out of them to their detriment.
21.
Only the results of the bilateral negotiations under the
·MFA will show how much the LDCs are going to be worse off under the new MFA. In this regard, the USA's stated policy during the MFA negotiations was to treat the Big Three Hong Kong, Korea and Taiwan more harshly than before but to treat other LDCs
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