NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

CONFIDENTIAL

Х

15,

Preference Scheme, i.e. full partici-

pation in in the community's offer on

Chapters 1 24; and full participation

offer

in the community's offer on Chapters 24-

99 except for the twenty-two products

above.

The Commission is arguing strongly that

Hong Kong should consider some form of

voluntary control on the twenty-two products.

ship

If

It may be worth putting to Hong Kong officials

this argument, which goes as follows.

Hong Kong were prepared to offer voluntary

control, then this would go a long way to

disarm the opposition of the Director

General for Industry which is complaining

that the adcition of twenty-two new tariff

quotas to the Commuity Scheme would make it

administratively very difficult to handle.

The other savantage of voluntary control

is that it would greatly improve the chances

in of getting the Americans to exclude Hong

Kong. The Community would be able to say

that they were including ong Kong in their

scheme subject only to the exclusion of

textiles and shoes (excluded by the Americans

themselves). If however the Community had

to say that Hong Kong's inclusion also

involved tariff quotas on a whole list of

sensitive products, the Americans, having no

tarife quotes arrangements, would be able to

/exclude

CONFIDENCIAL

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