BY SAFE HAND
British Embassy, Washington,
D.C.
29 September, 1970.
As I promised over the phone, I send you herewith
a paper containing such estimates as we have been ablo to make of the prospective loss of exports (not to mention investment) which Hong Kong would suffer if excluded by the United States and the E.E.C. from the Generalized Treferences Scheme.
2.
In brief, the position as we seo it is that long Roug has little or nothing to gain from inclusion in the Preferences Scheme, as its exports, like those of its closest rivals, are already competitive. Hong Kong's exclusion from the scheme, on the other hand, would enable llong Kong's competitors to take over Hong Kong's share of the market in many commodities; they would, in fact, to a large extent be helped at Hong Kong's expense.
A. Hermann
Counsellor for Hong Kong Commercial Affairs
Mr. Ernest Johnson,
Room 361,
National Security Council,
Executive Offices of the White House,
Washington, D.C.