5.
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the precedent it set for other major donors.
Hong Kong officials will no doubt underline the lack
of generosity in the present Community's CPS scheme
which is reckoned to cover only some 14% of Hong Kong's
present trade with the Community and if applied on
exactly the same basis to Hong Kong's trade with us
it would cover about 20% of her exports to the UK.
The Prime Minister has recently underlined the importance
the Government attaches to persuading our Community
partners to improve the present scheme in the interests
of developing countries. Hong Kong can be assued that
in the discussions next year on the adjustments that will
have to be made in the present scheme to make it suitable
for a Community of Ten, we will have regard to their
views. But, as realists, Hong Kong officials will
recognise, as we do, that it may not be easy to aven
substantial improvements on items which are subject to
low ceilings in the present scheme precisely becouse of
the threat of Hong Kong competition.
More generally, our belief is that the stimulus to
economic expansion which membership will in time brin
to the UK must be of benefit to a major supplier Eiba
Hong Kong. The enlargement of the Community should
mean that the justification for residual bilaters?
restrictions on imports from countries such as Hen: Kong
will gradually disappear to the benefit of their
exporters in the markets of the Nine.
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