PRIORITY

CYPHER/CAT A

FM WASHINGTON 172305Z

CONFIDENTIAL [NEUTRAL]

195

CONFIDENTIAL

TO PRIORITY FCO TEL NO 2368 OF 17/6.

KISSINGER'S VISIT TO LONDON.

WE SUGGEST THAT YOU MIGHT WISH TO CONSIDER RAISING THE PROSPECTS

AND SCOPE FOR THE PROPOSED U.S. GENERALISED PREFERENCES SCHEME

DURING THIS VISIT.

2. THERE ARE TWO POINTS OF PARTICULAR CONCERN TO THE U.K.:

ELIGIBILITY OF HONGKONG: AND THE QUOTE REVERSE PREFERENCES UNQUOTE

CONDITION OF ELIGIBILITY WHICH PARTICULARLY AFFECTS THE CARIBBEAN,

THE POSITION ON THESE ISSUES REMAINS SUBSTANTIALLY AS SET OUT IN MEYNELL'S LETTER ECO 6/13 OF 21 MAY TO BRITTEN (TPD), EXCEPT THAT THE TIME-TABLE FOR INTRODUCING LEGISLATION HAS SLIPPED. IT LOOKS AS THOUGH DECISIONS WILL HAVE TO BE REACHED BY PRESIDENT NIXON (AFTER SOME FURTHER WHITE HOUSE PROCESSING OF U.S. INTER-AGENCY RECOMMEN- DATIONS WITHIN THE NEXT THREE TO FOUR WEEKS) WITH A VIEW TO· INTRODUCTION OF A BILL TO CONGRESS ABOUT THE END OF JULY. WE HAVE BEEN WARNED THAT, IN DEFERENCE TO CONGRESSIONAL CONSIDERATIONS, ADMINISTRATION OPINION SEEMS TO BE HARDENING AGAINST GIVING

ELIGIBILITY TO HONG KONG EVEN ON A RESTRICTED BASIS COMPARABLE TO

THAT OF THE EEC'S OFFER. IT HAS ALSO BEEN PUT TO US BY A MEMBER OF

PETERSON'S STAFF AT THE WHITE HOUSE THAT THE STRONGEST ARGUMENTS IN ..

FAVOUR OF INCLUDING HONGKONG, AND OF BEING FLEXIBLE ON THE QUOTE REVERSE PREFERENCES UNQUOTE CONDITION IN THE CASE OF THE CARIBBEAN,

ARE POLITICAL AND STRATEGIC: AND THAT IT MIGHT BE USEFUL IF KISSINGER

WERE PERSUADED TO INTERVENE ON THESE GROUNDS.

MILLARD

INTERNATIONAL TRADE DISTRIBUTION

TPD

NAM D

HKD

CARIBBEAN D

CONFIDENTIAL

RECEIVED IN

REGISTRY No.51 ▲ JUN 1971

нкны

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