x
/21
33. Most of the submissions already tabled accept the principle
of "self-election" for beneficiary countries. The MIDC hovo
not explained their position (paragraph 5 above); the USA
and Japan are very likely to exclude certain developing countries
for reasons of their competitiveness. The interest of the
U.K. in this of course is that Hong Kong should not be excluded
in such a way that would isolate her in internationel trade;
exclusion in company with, for example Taiwan and South Korea,
would be less objectionable. Our objective however is to do
铲
all we can to see that Hong Kong will not be excluded wholly,
and that mutually acceptable arrangements should bo worked out
bilaterally if the EEC or USA cannot accept greatly increased
imports from Hong Kong of sensitive products. We also have
an interest in whether borderline developing countries such as
Spain, Israel and Greece are included, since this would increase
the difficulties of certain domestic industries and Commonwealth
Conversely it would suit us to see Portugal included
suppliers.
since her products already enter the U.K. duty free.
34. The donor countries have not been able to reach any general
agreement on which safomard arrangements should be available
to them to reserve the preference on any product once granted.
Unless there is some degree of unanimity on this point it will
be difficult to ensure that the use of escape clauses does not
upset the "burden-sharing" concept. It is the basis of the
BEC's duty quota proposals on manufactures and semi-manufactures
that they will employ no other safeguard, other than the right
to excludo any beneficiary country from the quota in any year
when it supplies over 50 per cent of the quota. The Japanese
and others are particularly worried about the problem of
reconsidering their different approaches in such a way that an
agreed statement of intention can be put before the developing
/countries