invoke
offer for the reason suggested above would be un
arion,
"ifficulties for it.M.G.
weled to HMG The threat of either type of
exclusion would not necessarily help Hong Kong's
claims to beneficiary status in other donors'
1
schemes, but could possibly start a process of
"unravelling" the Generalised Preferences Scheme
before it has even reached implementation.
Such
an outcome might be not unpleasing to Hong Kong,
it
but would ental adverse political repercussions
for HMG. In any case it is dubious whether the
moment
present tormont is tactically right for HMG to
make an open threat of the kind suggested.
3. If pressed by the Governor Mr. Rippon could
speak on the following lines:-
(a) HMG is of course very much aware of Hong
Kong's interests in the Generalised Preferences con
text, and the Secretary of State has just sent a
personal message to Mr. Aichi urging that the
Japanese should not exclude Hong Kong from pref-
erences.
(b) As the EEC example was as important as
the Japanese so far as the US inclusion of Hong
Kong wes concerned, a further approach is being
made to the Commission on 15 September, (see UKDEL
EEC tel. no. 378, repeated to Hong Kong).
(c) While these bi-lateral approaches con-
tinue, it would be premature to launch the threat
of exclusions of beneficiaries and products in
އ
has doubtless learned through Jones,
international fora. However, Hong Kong will know
now
the UK has decided te excluded cotton and non-
our
cotton textiles from its preferences offer, a move
which complicated our position i vis-a-vis the EEC,
(8430) Dd.033246 600m 9/66 G.W.B Ltd. Gp 863
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