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6.

Particularly during the period leading

up to the global negotiations, Hong Kong's

interest should continue to be focussed on

parity of treatment with her competitors, this

being the most she can hope for. It is

unfortunate, but a tribute to Hong Kong's

dynamism, that her competition remains a

ready cause of alarm to the developed

countries, whether in Western Europe,

North America or even Japan herself.

This

is likely to remain a factor with which

Hong Kong has to contend, whatever

happens.

EEC Enlargement

7.

Commonwealth preferences will be phased out during the transitional period after British entry

into the Community, in accordance with the 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.

the expansion of economic activity in the

UK which enlargement should bring, will in

Furthermore,

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