Mr Gallagher
Mr. Bottomley,
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1.
GENERALISED PREFERENCES: EEC OFFER AND DEPENDENT TERRITORIES
I understand that a number of questions have been asked
about UKDel Brussels telegram No 88 with particular reference
1
to Hong Kong. The purpose of the telegram is to inform us
that the EEC Council of Ministers have agreed to the
Commission's proposals on generalised preferences (though a
formal decision to implement still has to be made UKDel
Brussels telegram No 89); it has to be read against the sub-
stantial amount of detailed knowledge we already possess of
the EEC scheme.
2. Mr Bottomley has asked whether paragraph 3 of UKDel
Brussels telegram No 88 means that Hong Kong and other UK
dependent territories will be included. The answer is that
Hong Kong is certainly included as a beneficiary and that
there is nothing in the Commission's proposals which would
exclude any particular dependent territory, i.e. Gibraltar.
We shall seek confirmation of this when technical talks get
under way with the EEC next month on the adaptation of our
GPS offer to theirs. But all dependent territories will be
excluded from the EEC's offer on textiles and shoes, though
in practice this will bite mainly on Hong Kong and Macao.
To offset the effect of their inclusion of Hong Kong, the
EEC have lengthened their sensitive list, and in the process
have imposed a cut-off point for each individual ldc of 20%
or 30% of the quotas - or import ceilings on most of the
/sensitive
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