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(62)

(105)

favour of its principal competitors among the developing countries."

3. Mr Rippon also sent messages to the Governor of Hong Kong

recording our intention thereafter to pursue the aim of eliminating

discrimination against Hong Kong "in our technical contacts on the

adaptation of our scheme to that of the Community and after

enlargement, in the annual reviews in which we shall participate as

full Members". He concluded by saying "We shall not let those

opportunities go by". Further details of these statements are at

Annex A and in the flagged papers.

4.

We are committed by Protocol 23 to the Treaty of Accession to

align with the Community's GSP from 1 January 1974. This arrangement

was negotiated in December 1971, after the arrangements for Hong Kong

had been signed.

THE HONG KONG CASE

5. At talks in London in July this year Hong Kong officials

reminded us of Mr Rippon's undertakings and asked for them to be

fulfilled. The Governor has since reported his anxieties in his

telegram No 827. In particular he is worried "about the likely

short-term political impact on a situation in which the United

Kingdom has discriminated against Hong Kong, and Hong Kong only, in

respect of textiles and footwear. It is just the sort of issue

likely to raise emotive hackles

statistically, in his telegram No 87, the effects of exclusion on

the Hong Kong economy.

837

He has also set out

Subsequently he has informed us (Hong Kong

telegram No 1065) of preferences enjoyed by the UK in Hong Kong,

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