TNAG-1401-FCO40-1873-Future-of-Hong-Kong-continued-participation-in-the-General-A-1985 — Page 217

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DSR 11C

3. A fuller analysis of the approach of the main LDC and

NIC suppliers, and an assessment of the strength of their

combined front would help us form a view on whether a

hard line by developed countries would be likely to spill

over into other disputes to the detriment of the EC in

general and the UK in particular. Some LDCs may have a

strong interest in seeing an MFA extension which

continues to give them assured levels of access, while

NICS such as Hong Kong, Taiwan, Singapore and South Korea

stand most to gain from a speedy return to full

liberalisation.

The paper could usefully expand on this

point i.e will the latter want to make a break for full

liberalisation now? Can their needs be reconciled with

the LDCs and will they see greater liberalisation in

textiles as a quid pro quo for our parallel demands, e.g.

on removal of high tariff barriers? The paper should

also consider whether we could accept with equanimity a

further squeeze on Hong Kong following the agreement with

China on the colony's future.

4. The second area where the paper could usefully be

fleshed out is in analysing the negotiating aims of our

EC partners. The Danes and Dutch are identified in the

paper as favouring a more liberal regime, but little is

said of the others, As you know we have asked EC posts

to look into this point (FCO telnos 46 and 50 to UKRep

Brussels refer).

5. Thirdly, since we do not negotiate alone, the paper should reflect that our objectives need to be tempered

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