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4. THE SECOND OBJECTIVE WAS TO OBTAIN SOME BENEFITS FROM THE G P S IN THE ENLARGED COMMUNITY AS SOME COMPENSATION FOR LOSS OF COMMON- WEALTH PREFERENCE IN THE U K. THESE TO OBJECTIVES VERE COMPLEMENT- ARY AND PRODUCED A BETTER SOLUTION AND A BETTER SHARING OF THE BURDEN THAN IF EVERYTHING WAS LOADED ONTO THE ENLARGEMENT NEGOT- LATIONS. IN THE LATTER CASE THE U.S. CONTRIBUTION WOULD BE NIL.
5. TRAN SAID HE WOULD GO BACK AND TRY AGAIN WITH JONES' ARGUMENTS AND NEW PROPOSALS, BUT HE SAW LITTLE PROSPECT OF SUCCESS IN VIEW ESPECIALLY OF THE ATTITUDE OF THE FRENCH. ONE OF THE DIFFICULTIES WAS THAT THE UK OFFER NOW APPEARED TO DO LITTLE FOR THE ASSOCIATED AFRICAN STATES. THE VIEW OF THE SIX HAS THAT HONG KCNG SHOULD BE OUT OF THE GPS ALTOGETHER BOTH BEFORE AND AFTER ENLARGEMENT. THEIR POSITION ON ENLARGEMENT WAS LIKELY TO BE THAT THE UK SHOULD BE ALLOVED EIGHT YEARS TO PHASE OUT EXISTING PREFERENCES
AND TO IMPOSE THE CET ON HONG KONG.
6. KEMMIS LATER SPOKE TO MLLE GUYOT (FRANCE) WHO CONFIRMED THE GIST OF THE ABOVE AS FAR AS THE G P S IS CONCERNED. SHE SAID THAT FRENCH INDUSTRY WAS NOT PREPARED TO SEE THE COMMUNITY DO ANY MORE FOR ANYONE IN THE CONTEXT OF THE G P S, LET ALONE HONG KONG. THEY WERE, HOWEVER, ANXIOUS ENOUGH TO SEE THE COMMUNITY ENLARGED TO BE PREPARED TO SEE CONCESSIONS MADE IN THE BRUSSELS NEGOTIATIONS, EVEN TO THE EXTENT OF GIVING HONG KONG MORE THAN SHE WOULD HAVE RECEIVED IN THE COMMUNITY UNDER THE G P S.
7. AS WE UNDERSTAND THAT WELLENSTEIN HAS NOW BEEN ALERTED TO THIS PROBLEM WE STILL THINK IT MAY BE WORTHWHILE TO CHECK WITH HIM AND TO RE- DEPLOY AGAIN ALL THE ARGUMENTS IN FAVOUR OF DEALING WITH THIS QUESTION THROUGH THE GPS AS WELL AS IN THE ENLARGEMENT NEGOTIATIONS. GRATEFUL, HOWEVER, IF TRAN'S CONFIDENCE, PARTICULARLY ON POINT IN LAST SENTENCE OF PARA 5 ABOVE, COULD BE RESPECTED.
F C O PASS TO HONG MONG CODEL BRUSSELS WASHINGTON TOKYO BRUSSELS (FOR DODGE) AMD SAVING TO UKDEL OECD.
SIR E MELVILLE
[REPEATED AS REQUESTED]
INTERNATIONAL TRADE DISTRIBUTION
T.P.D.
ADDITIONAL DISTRIBUTION H.K. INT TRADE
U.N.D.
E.I.D.
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