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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
footwear. 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 important 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 if the Community
would not agree to a change, we should at least be
seen to have tried. But we judged that there was no "The Chorrector of the Duchy
chance of success. He 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
impressed and will probably question the Prime
Minister closely.
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5.
The best answer is to reaffirm our determination