(17865) Dd.145178 400m 5/73 G.W.B.Ltd. Gp.863
NOTHING TO BE WRITTEN IN THIS MARGIN
CONFIDENTIAL
HONG KONG AND THE EEC GENERALISED SCHEME OF PREFERENCES
3.
In 1971 the Community agreed with us to admit
Hong Kong to their GSP, except for textiles and foot-
wear. Exports of these items from some of Hong Kong's
major competitors among the developing countries are,
however, included in the Community's GSP. In particular
the Philippines, Thailand and Yugoslavia were given
preferences on cotton textiles later than the 1971
negotiations. We shall align with the Community's
scheme on 1 January, immediately before the Prime
Minister's visit. We shall then be seen to discriminate
against certain exports from our own Colony. Hong Kong
are concerned about this, for its own sake, and because
of the bad example to other importers like Japan and the
USA.
4.
The Governor advised that we should seek to
remove the discrimination: if the Community would not
But we
agree, we should at least be seen to have tried.
judged that there was no chance of success, at least for
this year, and should reserve our effort for next year.
The Chancellor of the Duchy therefore made and published
a statement to the Council of Ministers on 6 November,
that we could no longer accept discrimination against
Hong Kong, and would press most resolutely for a change
during the Annual Review in the autumn of 1974. We have
urged the Hong Kong Government to welcome this as a
success, in the interest of our bilateral relations and
because this is their best tactic with the Japanese and
Americans. They have gone along with this. But the
business community in Hong Kong is less impressed and will
probably question the Prime Minister closely.
15.