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the Hong Kong Representative in Brussels was supposed to cover all the member states of the EEC although recently he had not been able to travel between them because of ill health.

MACAO

The French Consul General somewhat obliquely hinted at the possibility that Macao was being used as a way of sending textiles, shoes and other goods produced in Hong Kong and in China into the EEC with the benefit of the GSP.

Sir Christopher Soames pointed out that although Portugal, by virtue of its special agreement with the EEC, enjoys preferential entry into the EEC markets (including textiles and shoes) giving them an advantage over Hong Kong, Macao will not have the same preferential treatment. It is treated as all other dependancies of non member states (and the same way Hong Kong is treated) so that it enjoys the GSP but without textiles and shoes.

Nevertheless the development of Macao both as a producer and as a channel of supply was a matter on which the Commission would need to keep a close eye. They found it difficult to get statistics and would be very grateful if the Commercial Cousellors in their future reports from Hong Kong would also cover Macao developments in external trade (I subsequently gave one of Mr Soames staff a copy of the published statistics for Macao for 1972 which I have in my capacity as HMB Consul in Macao).

16 A.

TW Aston

dictated 11 Sept '73

TWA/YAS

to:

FCO:

D Butler Esq, European Integration Dept

A Stuart Esq, H K I O D

DTI:

Allott Es& CRE 1.

Miss Lackey CRECRE

Senior British Trade Commissioner

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