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OF 302317Z NOVEMBER 90
INFO ROUTINE ROME, PARIS, TOKYO, SEOUL, HONG KONG INFO ROUTINE UKREP JLG HONG KONG
para. 13.
GIOLA'S VISIT TO LONDON, 27 NOVEMBER: JAPAN CARS, AEROSPACE AND LEATHER, KOREA, COMMISSION OFFICE IN HONG KONG
SUMMARY
1.
GIOLA (DGI) MET DTI OFFICIALS AND PAID A COURTESY CALL ON MR LILLEY. HE WAS PESSIMISTIC ABOUT THE FRENCH POSITION ON JAPANESE CARS. THE FRENCH WERE CONVINCED THAT THE UK'S VER LINKED IMPORTS AND TRANSPLANTS. WE UNDERTOOK TO PROVIDE MATERIAL REFUTING THIS. HE CONFIRMED THAT THE COMMISSION REMAINED OPPOSED TO LINKAGE AND TO INTERFERENCE IN THE COMMERCIAL DECISIONS OF JAPANESE MANUFACTURERS. HE OUTLINED FRENCH PROPOSALS ON SAFEGUARDING AND NON-TARGETTING WHICH WE CONFIRMED WERE UNACCEPTABLE. AEROSPACE, LEATHER, KOREA AND THE PROPOSED COMMISSION OFFICE IN HONG KONG WERE ALSO DISCUSSED.
DETAIL
(A) DISCUSSIONS WITH OFFICIALS: CARS
2. GIOLA SAID PROSPECTS FOR AGREEMENT WERE MUCH WORSE THAN AT
THE BEGINNING OF AUGUST. THE COMMISSION PAPER WITH INDICATIVE FIGURES HAD BEEN A MISTAKE: IT HAD HARDENED INDUSTRY, AND THEREFORE FRENCH, OPPOSITION TO LIBERALISATION. THE COMMISSION NOW REALISED FORECAST TRANSPLANT PRODUCTION SHOULD BE NEARER 1 MILLION THAN 1.5 MILLION. HE WAS AWARE OF THE DANGERS OF STIRRING THINGS UP WITH A REVISED PAPER BUT FELT THAT THE DAMAGE DONE SHOULD BE PUT RIGHT SOMEHOW. BRIDGE SAID THAT ANY REVISED TRANSPLANT FIGURES WOULD CERTAINLY BE TAKEN BY INDUSTRY TO REPRESENT CEILINGS RATHER THAN ESTIMATES.
3.
GIOLA CONFIRMED THAT THE COMMISSION ENDORSED THE LINE SET OUT IN MR LILLEY'S LETTERS OF 2 AND 20 NOVEMBER TO BANGEMANN. HOWEVER HE FOUND IT DIFFICULT TO PERSUADE THE FRENCH THAT THERE SHOULD BE NO LINKAGE BETWEEN IMPORTS AND TRANSPLANTS WHILE THEY REMAINED CONVINCED THAT THE UK'S VER QUOTAS INCLUDED SALES OF NISSAN'S SUNDERLAND PRODUCTION. THE FRENCH POINTED, AS
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