NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

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developing Commonwealth countries. Hong Kong is,

however, in a different position because of her

close concern with the preference scheme. It is

true that a modification of our offer on the

lines proposed would not affect the most vital

question for Hong Kong i.e. the definition of

beneficiaries. Our proposals will nevertheless

be of considerable interest to the Hong Kong

Government and we should aim to inform them as

soon as possible of what is in our mind and to

keep them in touch with future developments."

We are particularly concerned that Hong-Kong

should be kept fully in the picture and not left

to glean information through her representatives

in Western Europe.

You will be aware of her

reactions to the lack of consultation over the

textile tariff.

Although the modification of

our offer on preferences is not a comparable

issue, we still consider it most important not

to present the Hong Kong Government yet again

with a fait accompli.

Para. 33. Although we accept the thought behind

the third sentence we are not entirely happy with

the wording. "Less objectionable" could be read

as meaning "reasonably acceptable". I suggest

this might be reworded on something like the

following lines: "It is in our interest to

ensure that Hong Kong gets the best possible

share of the benefits of the preference scheme.

If her exclusion in some form or other cannot be

avoided we should aim at the least objectionable.

formula." I think it could also be useful to

make our position on self-election a little

clearer in this paragraph. It might say: "So

long as we maintain our stand on the self-

election principle we can hardly oppose the

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