To:

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Governor, Hong Kong

From: Cater

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INFO Print, Token. GENER

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Following from Caren

EEC Generalised Preferences Scheme

R

Brussels

We had useful discussions this morning with

FCO and DTI officials on next steps to be taken on

the

the question of how best to deal with the problems

which the Commission has in respect of Hong Kong.

The consensus was that at this stage it was

advisable that Hong Kong officials/should meet

(fr Dedge).

bilaterally with the Commission at the earliest possible

opportunity for "technical discussions" aimed at

establishing the full reasons for the EEC's concern

and if this includes the possibility of exclusions to

seek as far as possible the justification for and scope

of any moves proposed and how the Commission might

implement them. Should these proposed moves involve

discrimination against/Hong Kong in any form whatsoever

(including additions to the textiles and footwear

exclusions list) it was agreed that Hong Kong officials

should formally refer to the Community's statement

(CODEL Telegram 16 of 12th January 1971 para 3(b)) that

any special preference conditions should not in their

application give rise to discriminatory elements and

also to Mr. Rippon's statement in reply that it was

the continuing concern of HMG to avoid discrimination

against Hong Kong in favour of its principal competitors

among the developing countries (CODEL Telegram No. 72

of 2 February 1971 para 3). When the outcome of these

consultations was known, if necessary, further

(discussions) could then be held with HMG to consider

therh

HMG t

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