/RM3/11
Miss Marsden
Mr Strat
Mr
P.A.
Poptroy 1/31/10
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DATE:
CC.
HKC099/2
Robert Madelin
24 October 1989
Sir D Hannay
Mr de Fonblanque
Mr Pakenham
Political Adviser, Hong Kong
Head, JLG, Hong Kong
Mr Paul, HKD, FCO
Dr Jones-Parry, ECD (E)
Mr Roberts, Dep.
FCO
Sec. DTI
19
Note for the Record
CALL BY HONG KONG SECRETARY FOR TRADE AND INDUSTRY: 24 OCTOBER 1989
1. Mr Chan called this morning on Sir David Hannay, accompanied by Mr Webb-Johnson and Mr Wilson, both of the HKGO here. Mr Chan had arrived in Brussels from Geneva, and was going on to Hamburg, Keil and London.
2.
In Geneva, Mr Chan said that he had found progress in the Uruguay Round to be uneven. The new areas, of interest to developed countries, were being handled more energetically than the traditional areas such as textiles, tariffs and non-tariff barriers. It was important to keep the traditional items in mind. The forthcoming Tokyo meeting of Trade Ministers would be an opportunity to give this sort of political push. Hong Kong would be represented for the first time. Mr Chan himself would attend.
On agriculture, Mr Chan noted that Hong Kong's interest was in a successful outcome to this important part of the Uruguay Round package. Hong Kong had no particular axe to grind.
3.
Sir David Hannay noted that the forthcoming "global" US paper would be important: first indications were that it would be over-ambitious, perhaps even marking a return to the "zero 2000" option. This would encourage the more nervous among EC member states to resist further concessions, and would not make life easy for Commission negotiators.
4.
On services, Sir David Hannay saw greater prospects for progress. Hard-line developing countries were beginning to participate. Mr Chan agreed: Hong Kong would certainly wish to participate in the outcome on services, although it was important to secure participation from developed countries whose current regimes were less liberal.
5.
On textiles, Sir David Hannay expected the revised Silberston Report to have a significant impact in the UK and within the Community. HMG would be trying to get the Silberston message into the minds of EC negotiators. It was not easy for Portugal, or other member states heavily dependent on the textiles and clothing industries to accept that a non-protectionist approach could work in the long term. That said, the textiles industry in Europe was already being transformed: what was needed was accelerate the process of structural adjustment. Mr Chan agreed. He sensed that progress towards the Single Market would help to stimulate structural change. Hong Kong would be realistic and not look for transformations overnight. Sir David Hannay welcomed this, and advised that Hong Kong should allow the message of
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