BY BAG
FROM GOVERNOR HONG KONG
RESTRICTED [FRAME]
RESTRICTED
SAVING TELEGRAM
TO FCO TELNO 441 SAVING OF 30 NOVEMBER 1973
61
EEC Generalised Preferences Scheme:
Textiles and Footwear
At a meeting of the Textiles Advisory Board
held earlier this week the following statement was made on behalf of all the unofficial members present:
"Mr Chairman, I speak on behalf of all Unofficial Members of this Board.
We have asked you to call this emergency meeting today to draw your attention to the widespread concern which is felt in the textile and footwear industries as a result of HMG's decision to discriminate against imports from HK of textiles and footwear to the UK market in 1974.
We are concerned on several counts.
We are disturbed that HMG could have agreed to a position whereby one of its dependent territories should have been singled out for discriminatory treatment in the UK market and that our competitors, with no consti- tutional ties with the UK whatsoever, should be especially favoured. We find it hard to believe that South Korea and Yugoslavia, to quote just two examples, should be preferred to HK. We regret to say that this action by HMG raises doubts about the force with which the HK Government represented the concern expressed earlier by this Board, and by several of the local trade and indus- trial associations, when we first saw the possibility of discrimination arising against HK.
Of greater concern to us is whether we can place any reliance on statements made by HMG and UK Ministers and officials. We recall particularly the public avowal made by Mr Rippon when he visited HK, that HK's interests would be protected by HMG and that on UK entry into the EEC, it would be HMG's continuing concern to avoid any situation in which HK was discriminated against. Similar statements by others have subsequently been made. We have also been assured publicly on many occasions that HMG would defend our interests in the EEC, and, indeed, that as a Member State that defence would be all the more effective.
193
/While