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ROUTINE HONG KONG
TL GRAM NUMBER 602
TO FOREIGN AND COMMONWEALTH OFFICE
10 SEPTEMBER 1970.
216
CONFIDENTIAL
NEUTRAL/
ADDRESSED F C O TELNO 632 OF 13 SEPTEMBER R FI
UKDEL BRUSSELS AND UKDEL GENEVA.
YOUR TELEGRAM 139 TO UKDEL GEC.
GENERALISED PREFERENCES.
HICK G/R:
I AM GRATEFUL FOR THE DIPLOMATIC EFFORT WHICH H.M.G. HAS BEEN
MAKING TO PREVENT THE EXCLUSION OF HONG KONG BY OTHER MAJOR ''DONORS'', IT SEEMS, HOWEVER, THAT THE COMMISSION HAS FINALLY DECIDED TO RECOMMEND TO THE COUNCIL OF MINISTERS THAT. HONG KONG BE EXCLUDED FROM THE COMMUNITY OFFER' AND THAT THE COUNCIL IS VERY LIKELY TO ENDORSE THE RECOMMENDATION SEMICOLON WHILE THE LATEST NEWS FROM TOKYO (THEIR TELEGRAM 667 TO YOU) AND WASHINGTON (THEIR TELEGRAM, 2575 TO YOU) IS NOT IN ANY WAY REASSURING.
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2. 1 AM THEREFORE BECOMING VERY CONCERNED INDEED LEST THE GENERAL- ISED PREFERENCE SCHEME, WHICH LOOKED AT ONE TIME TO OFFER A POSSIBLE ALLEVIATION OF THE ADVERSE EFFECTS ON HONG KONG OF BRITAIN JOINING THE E.E.C., BECOMES INSTEAD YET ONE MORE ARRANGEMENT DISCRIMINATING AGAINST HONG KONG IN A WORLD OF PROLIFERATING PREFERENCES, FOR RICH AS WELL AS POOR COUNTRIES, FROM WHICH HONG KONG IS EXCLUDED. PERHAPS WE CAN LIVE WITH SUCH A SITUATION BUT ONLY. AT SERIOUS COST TO LIVING STANDARDS.
3. IT SEEMS THAT THERE MAY NOW BE A GENERAL TACIT AGREEMENT TO AVOID CONTROVERSY ABOUT HONG KONG (AND PERHAPS OTHER POSSIBLE BENEFICIARIES) AT THE OECD TRADE COMMITTEE AND THE UNCTAD MEETING FOLLOWING IT. BUT, WHILE THERE MAY BE A TEMPORARY ADVANTAGE IN PREVENTING AN IMMEDIATE DECLARATION OF HONG KONG'S EXCLUSION, I HAVE DOUBTS WHETHER IT IS TO OUR ADVANTAGE TO ALLOW THE QUESTION TO CONTINUE TO BE GLOSSED OVER FOR MUCH LONGER AND TO ARISE AS AN ACUTE ISSUE ONLY IN THE ENLARGEMENT NEGOTIATIONS/WHERE
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CONFIDENTIAL