(c)
(a)
two countries under reference did not
commend widespread political support:
their ldc status had never been
called in question;
Mr. Hannay pointed out the tactical
disadvantage in complicating the
Rifperati EDC's study of Hong Kong with their
exercise on beneficiaries in general.
Spreading alarm about these countries
would cause yet more alaria about
Hong Kong's competitive power; and
the Chairman and other speakers poin-
ted out cold that such action
would have negative effects for Hong
Kong vis-à-vis the USA, which wes
after all Hong Kong's main prefer-
encos target.
4. With regard to (iii), Sir J. Cowperthwaite
suggested that Hong Kong should be excluded
only on those textiles items where she enjoyed
a large share of the 30 market, but Mr. Horasy
pointed out that what progresa had been achieved
so far was because of the attraction of a tobel
exclusion on textiles and shoes. Picking at
the edges of this presosal could well cause it
to fall apart altogether. Mr. Lam and Mr.
Denman stressed the EEC reluctance to get
involved in further complications on textiles.
The main objective was to get enough from the
5.
EEC to induce the Americans to follow suit.
As for the rider on (iii), the Hong Kong
proposal that textile exclusions might be rever-
sed in the light of evident damage (Hong Kong
officials quoted the example of the Australian
preference scheme, which allowed for such
!