3

(2) on other items considered "sensitive" (to be discussed)

(3)

-~

to limit Hong Kong to no more than 20 25 per cent

of the quota;

on all other products to include Hong Kong in the general

scheme on the same basis as other developing countries.

It would also appear reasonable if other developing countries

who met the criteria in (1) above (i.e., that they provided more

than 50 per cent of the Community's imports from developing

countries of an item) could be excluded from participation

in the scheme for that item.

7. As regards the general arguments for the inclusion of Hong

Kong in any scheme of preferences the paper "Aperçu sur Hong Kong"

and the first part of the paper "Le Froblème de Hong Kong" (les difficultés d'exclure Hong Kong) give a very fair summary

which can be endorsed.

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