TNAG-1493-FCO40-2051-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 109

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THAT OTHER MEMBER STATES SEEM UNSIGHTED ON THIS ISSUE, IT IS

NECESSARY TO KEEP THE COMMISSION UP TO THE MARK, AND NOT ALLOW

THEM TO WRONG-FOOT THEMSELVES BY CONCEDING TOO QUICKLY ON AREAS

WHERE THE MEXICANS HAVE INDICATED FLEXIBILITY (EG ACCEPTING A 50

PER CENT MAXIMUM TARIFF, WHILE, AS YOU REPORT, THE MEXICANS HAVE

ALREADY REDUCED THIS TO 45 PER CENT WITH THE POSSIBILITY OF

FURTHER REDUCTIONS). OPERATING IN A VACUUM INEVITABLY IDENTIFIES

THE UK POSITION AS MORE CRITICAL THAN THAT OF OTHER MEMBER

STATES. BUT WE ARE CONSCIOUS OF THE NEED NOT TO BECOME EXPOSED

ON THIS ISSUE.

HOWE

INTERNATIONAL TRADE

ECD (E)

MCAD

MR DAVID THOMAS

COPIES TO

MR MADELIN, ITP/DTI,

VICTORIA ST.

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