(as agreed by OFED

at muistional level)

&dicamicialin

3Bw- even if Hong Kong game acceptance and a developing country, here are certam to be preservationa on the past of a number

countries.

d theat

Selective exclusions or

luntations

of particular

Countries' products.

Draft Refer Choose

НКК 6/12

Reference....

Sir Arthur Galsworthy

1

(64

Choose maminte with

A note of 50 m Pt. B)

of File

Your endorsement on FCO telegram no. 157

to Canberra attached.

2. I am afraid that we cannot be sure that Hong Kong will be accepted as a "developing country" At present the agreed ministerial policy of self- election applies and Hong Kong is obviously content with this But Whatever form of disagree- ment against Hong Kong may take when a generalised system of preferences is applied to developing countries, we can be fairly certain that Hong Kong's position will be eroded.3

n the past Hong Kong has made clear her view that she would not be suited by a scheme of generalised preferences. She prefers the protection of the most favoured nation principle of the GAT,and Commonwealth preferences. However she knows that there must be a scheme and has been most afraid that the prospective donors of pref- erences wh

developed countries/would exelude her entirely from offers. Fortunately the indications are against any a direct challenge to her status (which would be most awkward for us)? 4 So far we have only seen the offer of preferences

which the EEC will be making (and this off the record). In this there will be no definitive list of beneficiaries but references will be

butpreferences dealt with on a case by case basis which will mag amount to exclusion by country, by product in accordance with safeguard procedures

skill

4

4. There is thus slight room for argument on Hong Kong's behalf and her position may not be all that much affected.

The

harse-trading han still to take place Linen

there will be opportunity

6

Hong Kong ở

case.

cc.

(W.S. Carter)

12th March, 1969.

A. Noreton

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