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This question was the object of particular consideration by :elogations..

Indeed, the extrusion to this territory, chose structure of productim is extremely competitive,, of the system of preferences vould entail the risk of considertoly

lengthening the list of products to be excluded.

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In this consetiɔn the Counissions representative pointed out that the

Commission

agencies had also drawn up a list of sensitive products with reference

to 'long Kong. The delegations took note of this new list which was the basis f

a working document distributed at the session.

In the light of the above, several delegates emphasised the advantage which Vere sould be in continuing to work on this question on the basis of a working

hypothesis which exaludes Hong Kong from the preferential t-rise system.

Other delegations, however, (Federd Republic, Netherlands) pointed out that

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from the United such in exel ision might, on the one hand, finve roictions Kingdom and, on the other, on ise other third countries to exclude areas with

structures similar to Hɔng Koɑg ^nd which form part of the Metropolitan territory

of cert in Member States. The Gorain Delegation,sked, in particular, whether it

sorë not prefer.ple to find some other geons thin the axolision of this british

Colony from preferential treatment. It su, osted in this connection that the

passibility should be examined of adooting a masne asking it possible to vol ide

which adna certain products from certain o „untrie.

surf in the opinion of the termin Delegation, mɔill have the suvinte arrecting the principle of self-election

favoured by the developing comtries.

not

Pinally the delegatio-sdecided to reconsider this question and, in particular,

on the basis of the list of sensitive roducts in the case of Hong Kong, to study

the ipplications of a possible extension of preferences to Hong Konɛ.

11) Other countries

The representative of the Jommission drew attention to the implications of

the principle of self-election (ef. questions relating to countries like

Yoslavin, Israel, ato.). He also pointed out that a solution had tɔ ɔe found

for the developing European countries (reece, Turkey, Spain and Portugal).

CONFIDENTIAL

3.

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