RESTRICTED
UK'S POSITION IN THE COUNCIL OF MINISTERS, AND MADE IT PLAIN TH ON THE FIRST OPPORTUNITY AFTER OUR ALIGNMENT, WHICH WILL BE DURING
THE 1974 ANNUAL REVIEW, WE INTEND TO PRESS MOST RESOLUTELY
FOR HONG KONG'S TEXTILES AND FOOTWEAR TO BE INCLUDED IN THE
COMMUNITY'S SCHEME. MR DAVIES LATER MADE A PUBLIC STATEMENT TO THE
SAME EFFECT, AND THE SUBSTANCE WAS REPEATED IN ANSWER TO A QUESTION
IN THE HOUSE OF COMMONS ON 9 NOVEMBER. I HAVE ASKED THE GOVERNOR
TO PASS TO YOU THE TEXT OF THIS ANSWER.
6. THESE STATEMENTS REPRESENT A VERY CONSIDERABLE DIPLOMATIC
EFFORT BY THE UNITED KINGDOM ON BEHALF OF HONG KONG, AND I HOPE
THAT YOUR ASSOCIATIONS WILL ACCEPT THEM AS SUCH.
7. LIKE HONG KONG, BRITAIN LIVES BY TRADE. WE ARE WELL AWARE OF THE
IMPORTANCE TO HONG KONG OF LOWERING THE BARRIERS TO ITS TRADE
WITH EUROPE: BOTH FOR ITS OWN SAKE, AND IN SETTING THE PATTERN
OF HONG KONG'S WORLD TRADE. THE GOVERNOR AND THE EXPERTS OF
YOUR COMMERCE AND INDUSTRY DEPARTMENT HAVE KEPT ME FULLY INFORMED
OF THE DEVELOPING NEEDS OF INDUSTRY IN HONG KONG. YOUR PETITION
HAS CONFIRMED AND REINFORCED THEIR ACCOUNT. FOR OUR PART I HOPE
YOU WILL AGREE THAT WE HAVE DONE AND ARE DOING EVERYTHING WE CAN
TO MEET THESE NEEDS. ENDS.
8. SINCE THE PETITION WAS CONCERNED WITH TEXTILES AND FOOTWEAR
ONLY, WE HAVE NOT INCLUDED IN THE REPLY ANY REFERENCE TO
IMPROVEMENTS TO THE EXISTING GSP. WE NOTE HOWEVER THAT THE SIGNAT-
ORIES TO THE PETITION INCLUDE THE CHAIRMEN OF THE FEDERATION OF
HONG KONG INDUSTRIES AND THE HONG KONG GENERAL CHAMBER OF COMMERCE. IF YOU THINK THAT AN ACCOUNT OF CUR WIDER EFFORTS WILL IMPROVE
THE MESSAGE, WE WOULD AGREE TO INCLUDE A PASSAGE DRAWN FROM PARA. 3
OF OUR TEL NO 1143 TO FOLLOW PARA 6 ABOVE.
DOUGLAS-HOME
EUROPEAN ECONOMIC DISTRIBUTION:
ADDITIONAL DISTRIBUTION:
HKIOD
EID
TRED
2
FRAME
COPIES TO:
HONG KONG
6 GRAFTON
GOVERNMENT OFFICE,
STREET,
LONDON WI