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areas claiming to be developing".

He also indicated that,

if this formula was not adhered to, the U.K. would need

to further reconsider the extent to which it could grant

preferences. This, however, did not prove sufficient to

smoke out any of the other potential donor countries and we

left it at that for the time being.

4.

A propos the last sentence of paragraph 5 of my letter

of 22 September, we also agreed that it was not much use

continuing to hammer at di Martino at this stage and that we

should switch our attack to the representatives of some

of the Member States. Owen therefore gave a lunch to

Michele Guyot and Seduy from the French delegation and

Waldemar Mueller-Thuns (Germany)

we invited Wintermans as

well but unfortunately he could not come and there was no

other Dutchman of standing available.

5. In the course of the lunch we made it clear that we

were aware of the Commission's proposals for Hong Kong and

considered them to be not only disappointingly meagre but

highly discriminatory and a breach of the self-election

principle. I reiterated most of the points which appeared

in the paper translated by Tran as "Apercu sur Hong Kong" and

also the arguments in the paper I gave Tran enclosed with my

letter of 22 September. I then pointed out that the

Japanese now considered that Taiwan and South Korea were

more of a competitive danger for the future than was Hong

Kong. When were the Europeans going to wake up to this

situation? In any case the imposition of ceilings on

sensitive products and the opportunity of adding to the list

of these products provided very adequate safeguards for

Community industries. Finally, I said that the drawing-up

of the specially long "Hong Kong" sensitive product list

was a further discriminatory action.

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16.

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