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pr Modern 3, Jura EN

formally stated that the U.K. claimed developing status on

behalf of all its dependent territories and expected them

all to he beneficiaries in a generalised system of preferences.

Everyone in the room knew that this was, in fact, a formal

claim on behalf of Hong Kong and, although no direct comment

was made on the U.K. statement, the U.S., EEC and Japan made

it clear that they could not accept the wording in page 23 of

the draft.

7. At that point Miyasaki (Japan) suggested a new form of

wording. After some wrangling and an insistence on a

reference to the Special Group Report, we were finally forced

to accept a text in the following form:

"Beneficiaries

With

As for beneficiaries donor countries would in general7

base themselves on the principle of self-election.

regard to this principle reference should be made to the

(1) relevant paragraphs in document TD/56

Part I."

i.e. Section A of

9

8. The words "in general" were put in square brackets at

our insistence and they will be considered again when the

Report goes to the Trade Committee on 6 and 7 November.

9. This was not a very satisfactory outcome from Hong Kong's

point of view, and afterwards I renewed my lobbying in the

corridors with both Leary (U.S.) and with EEC delegates to

point out that Hong Kong was ready to accept any reasonable

"competitive need" formula for particular products, provided

it was based on statistical criteria and was applied to any

developing country or territory that met those criteria.

added that what I considered to be unreasonable was to base

exclusion, whether by country or by country ty product, on

/purely

I

(1) The UNCTAD reference number for the Special Group Report.

CONFIDENTIAL

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