TNAG-1491-FCO40-2049-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 63

GRS 260

CONFIDENTIAL

R

3 MAR

CONFIDENTHAL

FM BANGKOK

TO PRIORITY FCO

TELNO 116

OF 2804OOZ FEBRUARY 86

INFO ROUTINE JAKARTA, KUALA LUMPUR, MANILA, TOKYO, PEKING

62.A

YOUR TELNO 216 TO NEW DELHI: : MULT!!

1.

-

FIBRE ARRANGEMENT

ACTION TAKEN WITH THE MINISTRY OF COMMERCE. THAILAND HAS

BENEFITED FROM THE MULTI-FIBRE ARRANGEMENT WHICH HAS PROLIDED

HER WITH A SECURE MARKET AGAINST STRONG COMPETITION IN PARTICULAR

FROM HONG KONG AND KOREA. THE THAIS ACCORDINGLY ARE IN FAVOUR

OF THE RENEWAL OF THE MFA (EVEN THOUGH, FOR PRESENTATIONAL REASONS, THEY FROM TIME TO TIME PAY LIP SERVICE TO THE VIEW THAT IT IS A BAD THING).

2. THE ATTENTION OF THE MINISTRY OF COMMERCE AT PRESENT HOW-

EVER IS FOCUSSED ON THE PROBLEMS CAUSED FOR THEM BY THE US

FARM ACT. IT SEEMS UNLIKELY THAT THERE WILL BE ANY AGREED

ASEAN POSITION IN ADVANCE OF THE BEIJING MEETING BOTH FOR THIS

REASON AND BECAUSE THE TEXTILE INDUSTRY IS OF SUCH VARYING

SIGNIFICANCE TO ASEAN MEMBERS. HOWEVER THE MINISTRY SAY THAT EFFORTS ARE BEING MADE TO ARRIVE AT A CONSENSUS EVEN THOUGH SOME OF THE OTHER ASEANS TAKE THE VIEW THAT A RETURN TO GATT

WOULD BE PREFERABLE TO INTERIM MFA RENEWAL.

3. THE IDEAL SOLUTION FOR THE THAIS WOULD BE A RETURN TO THE MFA WITHOUT THE ADDITIONAL INTERPRETATION. IF THIS CANNOT BE ACHIEVED THEN THEY WILL LOOK FOR SOMETHING MORE LIBERAL THAN THE LAST PROTOCOL. THEY HOPE THE EC WILL GIVE UP THE ANTI-

SEARCH PROGRAMME.

4. THAILAND HAS NOW TAKEN OVER THE ROLE OF PRIME ASEAN GARMGNT EXPORTER HELD UNTIL A FEW YEARS AGO BY SINGAPORE. IN VIEW OF THE PROBLEMS THEY EXPECT TO ARISE WITH ACCESS TO THE US MARKET THE THAIS ARE LIKELY TO FEEL THEMSELVES UNDER INCREASING PRESSURE

TO DIVERSIFY THEIR EXPORTS IN THIS FIELD.

TONKIN

INTERNATIONAL TRADE

ECDG)

CONFIDENTIAL

RECT

DL

INDE

- 3 MAR 1986

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