.
CONFIDENTIAL
3.
Ambassador Kennedy is not, so far as we know,
directly concerned with the GPS question, but given the
close inter-connexion between Hong Kong's position as a
textile exporter and her and her hopes of benefiting
from the American GPS on other products (textiles and
footwear are excluded from the US scheme for all
beneficiaries, and in the EEC scheme for all dependent
territory beneficiaries), he will not be surprised if
Mr Royle reminds him of our earnest hope that the US
will be prepared to extend beneficiary treatment to
Hong Kong.
RECOMMENDATION
4. I recommend that, if a suitable opening presents
itself, Mr Royle should ask Ambassador Kennedy for his
assessment of the prospects of US GPS legislation this
year (without which the whole future of the GPS would be
in doubt), and emphasise to him the importance we attach
both to implementation of the scheme by the United States
and to Hong Kong's inclusion by the United States. The
EEC have found a way to include Hong Kong (subject to
certain special restrictions) and we very much hope that
the Japanese will now follow suit. We should therefore
welcome an early opportunity of exploring with the US
what solutions in the form of safeguards could be devised
for any problems they may have over Hong Kong.
CONFIDENTIAL
15.