CONFIDENTIAL
agreed programme of introducing EEC tariffs over the period 1974/77.
Although association was considered inappropriate for Hong Kong,
agreement was reached during the enlargement negotiations that
Hong Kong should be included in the Community's Generalised Preference
Scheme (GPS). As a result of this, Hong Kong has been enjoying the
benefits of the EEC scheme since it came into force in mid-1971.
Moreover, following inclusion in the EEC's scheme, a number of other
countries have felt able on grounds of burden sharing to extend this
Scheme to include Hong Kong. Furthermore, the expansion of economic
activity in the UK which enlargement should bring, will in turn bring
benefits to Hong Kong.
Generalised Preferences (GPS)
8. The then Japanese Foreign Minister Mr Aichi undertook to the
Secretary of State last year that Hong Kong would definitely be
included in the proposed Stage II of the Japanese GPS (to be introduced
next April). The Hong Kong Government has been engaged in talks with
the Japanese about the terms on which Hong Kong might be admitted, ie
the special restrictions which Japan would feel necessary to apply.
Hong Kong's concern is to secure equal treatment with South Korea and
Taiwan. The Japanese have not so far produced any list of GPS items
to which they would not feel able to give benefits in respect of imports
from Hong Kong.
9. The Secretary of State will be pressing Japanese Ministers to
bring their bilateral discussions with Hong Kong to an early conclusion.
This should be on a fair basis in relation to the treatment accorded
to Hong Kong's competitors so that Mr Aichi's promise can be fulfilled.
We continue to press Hong Kong's case for inclusion in other donor's
schemes from which she has been or might be excluded (eg United States,
Denmark).
3
CONFIDENTIAL