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PRICRITY
CYPHER CAT A
CONFIDENTIAL
FM F C O
121858Z
REF.
CONFIDENTIAL.
MIKEL
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FRAME
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TOP COPY
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TO PRIORITY GOVERNOR HONG KONG TELNO 854 OF 12 NOVEMBER
INFO BRUSSELS (FOR DODGE) UKMIS GENEVA (FOR PEARSON)
CODEL BRUSSELS.
FOLLOWING FROM MILLS.
E E C GENERALISED PREFERENCE SCHEME: PROPOSED EXCLUSION OF 12 ITEMS,
1. DODGE AND I SAW SCHOFFER OF THE COMMISSION ON THURSDAY
AFTERNOON (11TH NOVEMBER): TRAN HAD LEFT FOR PARIS.
2. SCHOFFER SAID THAT THE COMMISSION HAD UNDER CONSIDERATION
PROPOSALS TO EXCLUDE HONG KONG FROM PREFERENCE IN RESPECT
OF 12 ITEMS. THERE WERE THREE WAYS IN WHICH THIS COULD BE DONE: (A) EXCLUSION BY COMMUNITY REGULATION OF DEPENDENT TERRITORIES, (B) EXCLUSION BY COMMUNITY REGULATION OF HONG KONG ALONE,. (C) A VOLUNTARY UNDERTAKING BY HONG KONG NOT TO CLAIM PREFERENCE
IN RESPECT OF THESE ITEMS.
HE HOPED HONG KONG COULD ACCEPT LAST ALTERNATIVE SINCE TO DO
SO WOULD BE TO GIVE EFFECT TO AN ASSURANCE WHICH HAD BEEN EXCHANGED
BETWEEN E E C AND H M G OFFICIALS DURING ENTRY NEGOTIATIONS.
I RESPONDED THAT HONG KONG COULD NOT AGREE VOLUNTARILY TO FOREGO
PREFERENCE ON ITEMS IN QUESTION AND EXPRESSED SURPRISE THAT ANY
ASSURANCE HAD BEEN GIVEN AS SCHOFFER HAD ALLEGED. I SAID THAT
I HAD HAD DISCUSSIONS WITH H M G OFFICIALS ON TUESDAY (9TH NOVEMBER) AND IT HAD BEEN CLEAR FROM THAT DISCUSSION THAT THE
# M G OFFICIALS WITH WHOM I SPOKE HAD NO KNOWLEDGE OF ANY SUCH
ASSURANCE AND THAT IT WAS INCONCEIVABLE THAT SUCH AN ASSURANCE
WOULD HAVE BEEN GIVEN WITHOUT THE KNOWLEDGE OF THE HONG KONG
GOVERNMENT. SCHOFFER ADMITTED THAT HE HIMSELF HAD ONLY BECOME AWARE
OF THE ASSURANCE WITHIN THE PAST TWO OR THREE WEEKS BUT HE
KNEW THAT DI MARTINO AND TRAN HAD BEEN AWARE OF THE ASSURANCE
WHICH WAS GIVEN DURING ENLARGEMENT NEGOTIATIONS. I SET
CONFIDENTIAL
/DISCUSSION