NOTHING TO BE WRITTEN IN THIS MARGIN

Hong Kong in the Community scheme subject to

a number of reservations. The complete

exclusion of textiles and shoes was one of

these reservations. At one stage it appeared

that the EEC could be unwilling to include

Hong Kong in its offer at all and now that the

have gone some way towards doing so it would

be highly undesirable for us to raise with

them the question of textiles and shoes.

Furthermore we have no locus standi to urge

the EEC to delete items from their offer

(especially as we have removed textiles from

our own). On the contrary we should urge

them to be as generous as possible. Any

further narrowing of the EEC offer is liable to upset

the delicate equilibrium between

donor offers and would strongly encourage the

ujet

US Congress to urge the legislation to imple-

ment the generalised preferences scheme. The

US exclusion of textiles and footwear is

balanced by the EEC's imposition of duty

quotas on sensitive items, whereas the

Americans offer duty free entry for everything

included in their scheme.

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