certainly lead all other donors into similar action, thus
complicating the handling of the problem of Hong Kong in
the enlargement negotiations; conversely, there is good
reason to believe that, if the European Communities
include Hong Kong, the United States might well agree to
include Hong Kong in their scheme.
(iii) It would be advantageous for an enlarged European
Community to see Hong Kong included in the United States
offer even though this excludes textiles and footwear.
Hong Kong exports to the United States in 1969, not counting
textiles and footwear, came to 8440 million. This is two
and a half times Hong Kong's total exports to the European
57
Communities for the same year. Any developments which
might divert these exports from the United States to other
markets are surely to be discouraged.
(iv) It has been argued that "territories" should not
benefit from generalised preferences, because they are the
responsibility of a single metropolitan power. If this
argument is maintained by opponents of Hong Kong's
inclusion in the Generalised Preference Scheme, they must
then accept the enlarged Community's responsibility for
Hong Kong in the negotiations for the enlargement of the
Communities.
(v) On specific items of major importance Hong Kong does
not rule out special arrangements to protect donor
countries. Hong Kong's objective is not to engineer new
trade advantages but simply to prevent the generalised
preference scheme from turning into a trade barrier
discriminating against her.
/Her