Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

In Confidence

CONFIDENTIAL

DRAFT

PAPER FOR THE

MINISTERIAL

To:-

COMMITTEE ON

EUROPE

Type 1 +

FROM

Telephone No. Ext.

Department

w/1z0

among the develop's Countries.

HONG KONG AND THE COMMUNITY'S GENERALISED SCHEME

OF PREFERENCES

1.

In February 1971 we agreed with the Six during

the enlargement negotiations that Hong Kong should

be admitted to the Community's GSF, subject to

exclusion of benefits for their textiles and footwear. Hong Kong's principal competitions do receive benefits in these categories.

This means that from 1 January 1974, when we align

with the Community's GSP, we would, if we take no steps

to remedy the situation, ourselves have to discriminate

out ours Colony. against Hong Kong on footwear and textiles in favour

of their principal competitora among

among the developing

countries, whe de rreeive benefits on these items.

2. When this agreement was made, Mr Rippon conceded in Brussels

that the case of Hong Kong was settled definitively in the framework of the enlargement negotiations.

But he went on to say that Hong Kong was and would remain after enlargement a dependent territory of the

United Kingdom, and concluded: "It follows from this

that it must be our continuing concern to avoid discriminating against Hong Kong in favour of its principal competitors among the developing countries".

3. Mr Rippon also sent messages to the Governor of Hong Kong recording our intention to pursue the aim.

of eliminating discrimination against Hong Kong "in

(3001) Dd.145244 400m 8/73 L.Ltd. Gp.839

NOTHING TO BE WRITTEN IN THIS MARGIN

/our

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CONFIDENTIAL

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