CONFIDENTIAL

89

Mr Bottomley

HONG KONG AND THE GENERALIZED PREFERENCES SCHEME

In paragraph 7 of his minute to you of 18 February (copy attached) Mr Britten said that Hong Kong Department would be informing the Governor that Ministers had decided we should not press the EEC to exclude all footwear and textiles from their scheme.

2. The same point (ie Hong Kong's desire not to be discriminated against) came up during our talks with Hong Kong officials at the end of January/early February. It was then decided, after reference to Mr Rippon to accept the offer of the FRC and to work both before and after énlargement to avoid discrimination against Vong Kong The Governor acquiesceal in these arrangements.

3. In the circumstances and to avoid upsetting the Governor unnecessarily we have not sent a special communication to him in reply to his point that we should have pressed the EEC to exclude footwear and textiles from their scheme altogether. European Integration Department and Trade Folicy Department agree that there is no need for such a special communication.

4. You were the Chairman of the meeting at which the Governor first raised this point. I should therefore be grateful for confirmation that you agree we should take no further action in the matter.

10 March 1971

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Mr R Britten (TPD) Mr H Bring (EID)

· 824/3

B.4. two weeks

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CONFIDENTIAL

Laird

Hong Kong Department

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