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TO IMMEDIATE FCO TELNO UKDEL 370 CF 25 OCTOBER INFO PRIORITY HONG KONG INFO ROUTINE UKMIS GENEVA (FOR PEARSON) INFO SAVING BRUSSELS (FOR DODGE)
HONGKONG TELEGRAM NO. 836 E E C GENERALISED PREFERENCE SCHEME.
THE GOVERNMENT OF HONG KONG HAVE IN FACT BEEN ADVISED THROUGH
DODGE NOT QUOTE INFORMALLY UNQUOTE, AS SUGGESTED IN THE TELEGRAM
UNDER REFERENCE, BUT QUOTE FORMALLY THOUGH IN CONFIDENCE UNQUCTE
THAT THE MEMBER STATES ARE PRESSING THE COMMISSION THAT THERE
SHOULD BE EXCLUSIONS AND THAT THE COMMISSION IS PROPOSING THE
EXCLUSIONS LISTED IN PARAGRAPH 1 IN THE TELEGRAM UNDER REFERENCE.
THE COMMISSION HAVE, HOWEVER, MADE IT CLEAR TO DODGE THAT THEY
WOULD MUCH PREFER A GENTLEMAN'S AGREEMENT. THEY HAVE NOT,
HOWEVER, OFFERED ANY DETAILED JUSTIFICATION.
2. IT IS OUR ADVICE THAT THE CORRECT COURSE OF ACTION WOULD BE
FOR HONG KONG TO REACT BILATERALLY THROUGH DODGE IN THE SAME
FORMAL BUT CONFIDENTIAL MANNER. WE RECOMMEND THAT DODGE SHOULD
BE INSTRUCTED TO EXPRESS CONCERN AND TO ASK WHAT JUSTIFICATION
OR EXPLANATION THE COMMISSION CAN OFFER WITH SPECIFIC RELATION
TO THE ITEMS IN QUESTION.
3. DODGE SHOULD ALSO PERHAPS BE INSTRUCTED TO ASK THE COMMISSION
HOW THEY RECONCILE THE QUOTE DEPENDENT TERRITORIES UNQUOTE
MANCEUVRE WITH THE TERMS OF THE AGREEMENT REACHED ON HONG KONG
IN THE NEGOTIATING CONFERENCE (SEE ESPECIALLY OUR TELEGRAM NO.
CODEL 16 PARA. 3 (C)).
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4. AS SEEN FROM HERE, THERE WOULD BE VIRTUE IN MORE BILATERAL
EXPLORATION BETWEEN THE GOVERNMENT OF HONG KONG AND THE COMMISSION
BEFORE A DECISION IS TAKEN AS TO WHETHER OR NOT H M G SHOULD
INTERVENE.
BRUSSELS SAVING PASSED.
ADDITIONAL DISTRIBUTION
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EUROPEAN ECONOMIC & POLITICAL DISTRIBUTION
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COPIES TO:
HK GOVT OFFICE LONDON