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alternative but to apply the Community's GSP scheme as it

stood.

In his personal telegram No 737 to the Governor

Sir D Watson confirmed that we shall be submitting to

Ministers on the possibility of re-opening the issue in

Brussels. Mr Royle may wish to tell the Governor that this

submission is being prepared and that we shall keep him

informed of the decision as soon as it is taken. The

Minister may like to add that any negotiations in Brussels,

which might follow on a favourable ministerial decision would,

as pointed out by Sir D Watson, be very difficult, and we

cannot guarantee the outcome.

J

Hong Kong & Indian Ocean Department

7 September 1973

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