CYPHER/CAT A
CONFIDENTIAL
PRIORITY HONG KONG TO FOREIGN AND COMMONWEALTH OFFICE
2 NOVEMBER 1970
TEL.10. 762
303
281
CONFIDENTIAL 020832Z
ADDRESSED F C G TELNO 762 OF 2 NOVEMBER REPEATED WASHINGTON,
TOKYO, UKMIS GENEVA AND UKDEL BRUSSELS.
YOUR TELEGRAM 732 (NOT TO ALL)
GENERALISED PREFERENCES
295
лос
I AM GRATEFUL FOR THE DIPLOMATIC EFFORT THAT YOU AND POSTS HAVE MADE ON OUR BEHALF AND FOR WASHINGTON'S UNDERTAKING
TO RENEW REPRESENTATIONS. HOWEVER, IT SEEMS ALSO DESIRABLE THAT WE SHOULD MAKE SOME POSITIVE RESPONSE TO THE SUGGESTION PUT FOR- WARD IN PARA. 3 OF WASHINGTON TELNG 3122 TO YOU SEMICOLON AND THAT HE SHOULD PERHAPS MAKE IT CLEAR TO ALL THAT THERE IS SOME
FLEXIBILITY IN CUR ATTITUDE.
2. THE DISCUSSIONS ON THE G P S HAVE FROM TIME TO TIME BEEN CONCERNED WITH THE NEED TO MAKE ALLOWANCES FOR 'COMPETITIVE NEED, ALTHOUGH THE FINALLY AGREED CUTCOME APPEARS TO HAVE BEEN
''SELF-ELECTION'' (WHICH IT IS NOW PROPOSED TO DENY TO HONG KONG). PHEN AN EXPORTING COUNTRY HAS DEMONSTRATED ITS ABILITY TO SURMOUNT EXISTING TARIFFS, ITS COMPETITIVE NEED IS CLEARLY LESS THAN THAT CF AN EXPORTING COUNTRY THAT HAS NOT SUCCEEDED IN DOING THIS. THE AUSTRALIAN PREFERENCES SCHEME RECOGNISES THIS, AND SO, WHILE HONG KONG IS NOT EXCLUDED FROM THE WHOLE SCHEME, WE HAVE BEEN EXCLUDED ON PARTICULAR ITEMS AND THE AUSTRALIANS HAVE DEMONSTRATED THEIR WILLINGNESS TO CONSIDER REPRESENTATIONS FROM
US ON SUCH ITEMS.
3.
WE SHOULD NOT OBJECT TO THE EXTENSION OF SUCH A CONCEPT
MKK6/12
CONFIDENTIAL
TO OTHER