CONFIDENTIAL

3. On 26 January 1971, the Community stated

(CODEL 45) that it: "envisaged that a certain

number of products would not be able to benefit

from preference if they did not fulfil the origin

rules envisaged in the framework of the scheme.

The Community Delegation stated again that a certain

number of products coming from Hong Kong did not

On 2 February

seem to fulfil these conditions".

(CODEL 71) the Community offered to include Hong

Kong but reiterated the conditions stated in

CODEL 45 about sensitive products.

In reply,

the Chancellor of the Duchy of Lancaster (CODEL

72) asked for confirmation that these rules of

origin would be applied on a non-discriminatory

basis and for technical contacts between officials

regarding their practical implementation.

4. To our knowledge, these discussions have

not taken place and we suggest that through Dodge

you should remind the Community "formally though

in confidence" of these statements and press for

full discussion of the treatment of these products

in terms of both origin and damage to Community

producers.

5.

The remaining 6 items were listed at the end

of Table 3 of the Report as "other Hong Kong sensitive

products which could find themselves in the same

situation, for which the EEC imports effectively

only from Hong Kong and for which special attention

will have to be given in the future". So far

as we know, these items have not been formally

/notified

(8430) Dd.033246 600m 9/66 G.W.B.Ltd. Gp.863 CONFIDENTIAL

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