CONFIDENTIAL
Trade Policy Department Foreign and Commonwealth Office
London S.W.1
370
MTU.1/393/1
Dear Owen;
MTU 15/393/1
18 December, 1970.
Consultations with Hong Kong
GPS and Reverse Preferences
In the course of the third, session of the talks with Hong Kong officials held on 24 November (paragraph 11 of the record) Sir J. Cowperthwaite raised the subject of Hong Kong's desire to remove the UK's reverse preferences in the colony, such as they were, in order to offer the donor countries some quid pro quo, and there was some discussion of the American condition on reverse preferences Certainly, if our lengthy efforts to secure Hong Kong's inclusion to some degree by the U.S. in the end prove successful, we would not. I am sure, wish the whole exercise to fall down because we decided to stick on our reverse, preferences!
2. If I remember rightly, you suggested before the meetings that this subject might well come up. As you will have seen from the record, the UK side took the ling of cautiously conceding the logic of the Hong Kong brgurant, while making it clear that Ministerial approval would be required.
3. I would have thought that it would be for the 9.T.I. to submit this matter to Ministers, but please correct mo if I am mistaken. I wonder, however, whether we can divorce the reply we have promised Hong Kong on this matter from our consideration of reverse preferences. in general. These ere, not discussed in the paper on the GPS which eventually vent to EPC, and it is becoming increasingly awkward (especially when preparing briefing such as that for the Commonwealth Prime Ministers meeting) to be, without' Ministerial authority on this question.
4. Do you think the whole issue, including our attitude as regards the Indians, Pakistanis and Caribbeans is now ripe for submission?
العدد
Youn
Rae
(R. G. Britten)
0. H. Kemmis, Esq.,
CRE 1,
Department of Trade and Industry,
London, S.W.1.
CONFIDENTIAL