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W(S)L 51-7405
CONFIDLITIAL
solutions for Hong Kong, [and nor ex
ve likely
to de 39 before the UK meeting with Hong.
Kong officials, it is believed that they
are thinking in terms of Hong Kong's inclusion
in the Generalised Preference Scheme subject
to certain reservations. This was the
gist of a conversation at the beginning of
November between Sir C. O'Neill and the
Chairman of the Six at Deputy level.
UNCTAD Scheme
14. Jerlier this year the chances of Hong
Kong's inclusion within the bencficieries
under the UKOTAR Scheme appeared slight.
These chances now scem to have improved,
an improvement which must be due, in part at
least, to the strenuous efforts made on
Hong Kong's behalf by HMC. It now appears possible that the Community will include
Hong Kong, on a restricted basis; in that
case the Americans may well follow suit,
and the Japanese also, although possibly
with greater restrictions than the Community
ni at apply. We intend to continue, at
the negotiating table and outside, to press
the Six for Hong Kong's inclusion. The
Governor has indicated some rese_vations
about this line, arguing that it might be
batter to krep separate the two concepts
of Hong Kong's inclusion under UNCTAD and
benefit for Hong Kong in our negotiations.
lo will be necessary at the meeting with
Hong Kong officials to explain our reasons
CONFIDENTIAL
/for not