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CONFIDENTIAL
MTU 15/2
Preferences (120
Mr. Combs
Copies toi
Mr. Carter, Hong Kong Dert.✓
är. Giffard, 2.5.5.D.
EX.
EF.
108
flag F
Go8
108
(119)
Generalised Preferences
Position of Hong Kong
1. I am sorry that it has taken so long to reply to your minute of 8 Ceptember, but there have been a number of recent developments on this subject which we and long kong Department have had to consider before deciding on our attitude. Taking your points serintim I have the following comments:-
1) You will be aware that the principle of self-
election has been adopted by OECD countries because of the difficulty which would otherwise arise of reaching international agreement on objective criteris to determine relative stages of development among the developing countries. To date there has been no open confrontation within OBCD on this problem but this is mainly beesuse no country wishes to be the first to being the problem into the open. There has, of course, been considerable discussion in the eerridors about the possibility of excluding such countries as liong Kong and Rumania and same countries, e.g. Austria, have stated that they would find it difficult to grant preferences to Rumanía. As far as Hong Kong
is concerned the main objections have come from the EEC and the U.S. and it is on these
countries that we must concentrate our efforts. La UESTAD itself, the 77 are likely to press for the beneficiaries to be confined to themselves; but I am looking further into this.
ii) You will wish to see paras. 7 and 8 of
Mr. Carter's nimte of 8 üctober in connection with the degree to which we would be prepared to see the scheme watered down to accommodate Hong Kong's interests. While I agree with the comment that we should be suitably robust in our defence of liong Kong's interests I would question the lengths to which we need to go to schieve this position. As one of the protagoniste of the scheme it would be to our international disadvantage to be seen to be trying to water down the scheme to such an extent that its adoption would be of no practical value to the developing countries an @ whole.
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