CONFIDENTIAL

ni

Xime Kin

MTU 15/393/1

Mr Bottomley

RECEIVED IN

|REGISTRY No. 51

90

191

HONG KONG AND THE GPS

HKK 6//

1.

You asked to be informed of the present position on

position

4

the inclusion

in the GPS.

Hong Kong by the major donor countries

Briefly, it is as

as follows:-

i

1.

(a) We have pressed the State Department to include

Hong Kong unless other donors exclude her (which

would reverse the current Administration decision,

i.e. to exclude Hong Kong unless others include

her). Our latest information is that the

Americans are dragging their feet, and probably

waiting to see what the Japanese are prepared to

offer Hong Kong. The Embassy are continuing to

press the Americans; and we here will keep in mind

the question of a high level intervention.

(b) The Japanese now seem likely to include Hong Kong,

though on a very limited basis. But we still have

details of the Japanese proposals.

no

(c) The EEC's offer of preferences to Hong Kong was

broadly accepted by Mr Rippon at the Ministerial

at

Meeting with the EEC on 2 February.

offer excludes textiles and footwear;

Briefly, this

sets a cut

off point on certain sensitive products of 20% of

the quota; and envisages that certain products

from Hong Kong would not fulfil the origin rules to

be applied to the GPS.

"RCED IN

REGISTRY 29,51

197EB 1971

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