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LAL

C

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intention of abandoning Hong Kong.

There is a mutual

balance of interests and obligations.

9.

10.

After the war Hong Kong was built up by the energy

of its inhabitants with effective and impartial British

administration, into one of the great city states of

the world. Substantial difficulties have been overcome

in partnership between the UK and Hong Kong Govern-

ments and the people of Hong Kong, net Ings in

when outsidere might have thought that the future

the Colony was in doubt. Good relations between

Britain and China have assured stability in Hong Kong.

We have done much to protect Hong Kong's interests.

In some instances, however, matters do not rest

solely in the hands of HMG. An example is our

alignment on 1 January with the EEC Generalised

System of Preferences (GSF), which will involve

discrimination against Hong Kong over their textile

and footwear exports. There was no possibility of

persuading our partners before 1 January to agree to

changes in the scheme to benefit Hong Kong; but at a

recent meeting of the Council of Ministers we put

them firmly on notice that we intend to press most

resolutely next year for improvements to benefit

Hong Kong. We shall do this even though it costs us

something in Community terms.

11.

In the Lama upilt we are anxious to promote a

Communi y but

next few BORJA

fras peley whose effect over t

Fould be to open up the marketa

our more restrictivh Europen partners to irement

textile import: from countries such as Hong Kong.

we must be giv‘a (iceretion to pick the most au

occasions and toties for pursuing this.

- (3) Dd.145178 400m 5/73 G.W.B.Ltd.' Gp.863

CONFIDS' QUAL

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(363) 10.145178 400m 5775 G.W.B.LEL Gp.863

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