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Generalised Preferences Scheme
5. A scheme for generalised preferences for developing
countries is under active consideration within OECD and is now
being discussed at the UNCTAD Special Committee on preferences
at Geneva. Both the US and the EEC are reluctant for the scheme
(or schemes) which may finally emerge to be extended to Hong Kong.
Were the scheme to be extended in this fashion, it would
undoubtedly help to overcome a fair number of the problems for
Hong Kong of our entry to the EEC. Discussions continues un
ways of reaching some agreement on this, although the prospects
do not at present appear good. However the UK in presenting our
own illustrative list of preferences made it clear that we
firmly defend the principle that beneficiaries under any scheme
for generalised preferences should themselves elect for the
necessary status as developing countries; and that in our view
this principle should apply to Hong Kong.
6. If Hong Kong were not included in the scheme, it could
be argued that the resultant flow to the UK of Hong Kong exports
unable to penetrate present alternative markets would so strain
the UK import capacity as to make it difficult for us to extend
simultaneously preferences to other developing countries.
British Sovereignty
7.
British entry to the 34C would not affect our constitutional
position in respect of Hong Kong, unless Parliament divested
itself of some of its present responsibilities.
These are
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