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Member Governments of 0.E.C.D., the Special Group makes a number of recommendations, of which the following are of main concern
to Hong Kong.
32.
(1) Temporary generalised preferences on manufactures and
semi-manufactures can help developing countries to expand their export earnings.
(ii) Such preferences should give broadly equivalent export
opportunities in the various developed countries, who
(iv)
should share equitably among themselves the burden of
granting preferences.
(iii) Preferences should in principle be accorded to any country
or territory claiming developing status, and no country or territory should be excluded from preferential arrangements ab initio on the grounds of competitiveness. Donor countries may, to protect sensitive industries, exclude from the arrangements particular products in which developing countries are already competitive. (v) There should also be a safeguard clause enabling developed
countries to curtail preferences to avoid the risks of dislocation of industry and labour.
(vi) Preferences should be backed up by origin rules.
Should the Hong Kong Delegation press the matter further,
we could say that, if there were to be any possibility of the
Six entertaining a proposal for preferential access to the U.K. on
a restricted basis, it would certainly have to be limited as
follows.
(1) It would have to apply to a specified range of
commodities, which Hong Kong does not now export in significant quantities.
(ii) The period for "market research" would have to be
limited.
(iii)
The measure of reduction of the common external tariff could not be too great.
(iv)
Duty quotas or other limitations on quantity
could have to be provided for.
Even if the proposal were limited in these ways we would expect
the Six to see serious difficulties about accepting it.
would be likely to argue that it was unnecessary, basing
They
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