C. I. 150b

2700463

60x100-4/68-B64524

2:

To:

From:

Director of Commerce and Industry, Hong Kong.

Memorandum No. 226

Counsellor for Hong Kong Commercial Affairs, Brussels.

No.

Date

shift from French quota to EEC surveillance system was something of a quid pro quo but even this da now no longer be claimed.

6.

G

Categorisation principles for umbrellas, for example, appear to be broadly based, no doubt in part for simplicity of implementation. Furthermore as far as Hong Kong is concerned there are as yet no signgs and no likelihood of any on such bases of any real quid pro quo in accepting the proposals. Such cate- gorisations as do exist seem to represent partiul liberalisations vis-à-vis the Japanese.

7.

It is interesting to see that in the sections of the various Annexes dealing with current xeatrictions mention is made of a Benelux "surveillance of current umbtella imports coming from Hong Kong"; of French "restrictions convenues (sic) avec Hong Kong" on umbrellas; and of the quota figures in a French "accord" with Hong Kong; this latter French restriction is dis- tinguished from others applicable to GATT members, It is evident how, for practical purposes, we are being lumped together increasingly with the Japanese, or being treated in disregard of our GATT rights. I will keep you advised of relevant developments.

It remains doubtful whether we are in fact facing any real possibility of the implementation of these proposals which seem designed, to some extent en bloc, to develop later EEC negotia- ting positions, firstly with the Japanese and then maybe with us.

Jak

9.

As you know I adhere never the less to the view that IMG should be asked to lead us in a formal protest at the discrimi natory nature of these proposals in order to defend our GATT rights and perhaps tilt the scales against this overt form of discrimination.

YVD/31

c.c. AG (w/o encs)

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