(155
IMMEDIATE
ENCLAIR AND BY BAG
GR 300
FM FCO 091903Z
RECEINT
(MW)
ра
UNCLASSIFIED
FRAME
HKK 6/3
W/156
2
TO IMMEDIATE GOVERNOR HONG KONG TELNO 1144 OF 9 NOVEMBER/INFO PRIORITY UKREP EEC BTC HONG KONG BRUSSELS (FOR DODGE) SAVING TO UKMIS GENEVA.
--73
12-X1
рі
MIPT: GENERALISED SCHEME OF PREFERENCES HONG KONG.
MR PETER HORDERN (HORSHAM):' TO ASK THE SECRETARY OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS, IN VIEW OF THE UNITED KINGDOM'S OBLIGATION TO ALIGN WITH THE EEC'S GENERALISED SYSTEM OF PREFERENCES ON 1ST JANUARY 1974, WHAT ACTION HE IS TAKING TO REMEDY THE EXCLUSION .FROM THE GENERALISED SYSTEM OF PREFERENCES OF HONG KONG'S TEXTILE
AND FOOTWEAR EXPORTS.
REPLY GIVEN (BY MR ROYLE).
AT A MEETING OF THE COUNCIL OF MINISTERS OF THE EEC ON 6 NOVEMBER, MY RT HON FRIEND, THE CHANCELLOR OF THE DUCHY OF LANCASTER, MADE
A STRONG STATEMENT ON THE POSITION OF HONG KONG. HE SAID THAT DURING
THE ENLARGEMENT NEGOTIATIONS IN 1971 THE COMMUNITY HAD AGREED TO
ADMIT HONG KONG TO ITS GENERALISED SYSTEM OF PREFERENCES, SUBJECT
TO THE EXCLUSION OF HER TEXTILES AND FOOTWEAR EXPORTS. OUR CHIEF NEGOTIATOR AT THE TIME, HAD AGREED TO THIS ARRANGEMENT AND HE HAD
MADE IT CLEAR TO THE COMMUNITY THAT IT WOULD BE THE UNITED KINGDOM'S
CONTINUING CONCERN TO AVOID DISCRIMINATION AGAINST HONG KONG. THE
ARRANGEMENTS AGREED BY OUR PARTNERS IN 1971 MAY HAVE SEEMED TO THEM
NOT UNGENEROUS. BUT AN IMPORTANT CONSIDERATION NOW WAS THAT SINCE
1971 THE SITUATION HAD CHANGED TO THE DETRIMENT OF HONG KONG, AND
THAT THE PHILIPPINES, THAILAND AND YUGOSLAVIA, ALL OF THEM SERIOUS
COMPETITORS OF HONG KONG, HAD BECOME BENEFICIARIES UNDER THE
COMMUNITY'S SCHEME IN RESPECT OF COTTON TEXTILES. WE HAD EXAMINED
THIS MATTER CAREFULLY AND HAD CONCLUDED THAT IN PRESENT CIRCUMSTANCES
IT WAS NO LONGER ACCEPTABLE FOR DISCRIMINATION TO APPLY AGAINST
HONG KONG. AS THIS ASPECT OF THE SCHEME WILL REMAIN UNCHANGED FOR 1974, MY RT HON FRIEND HAS PUT HIS COLLEAGUES ON NOTICE THAT IN THE CONTEXT OF NEXT YEAR'S REVIEW WE INTEND TO PRESS/RESOLUTELY
FOR THE INCLUSION OF HONG KONG'S TEXTILES AND FOOTWEAR IN THE SCHEME
FROM 1975 ONWARDS,
DOUGLAS-HOME
Whe
B
EUROPEAN ECONOMIC DISTRIBUTION
EID HKIOD
+
FRAME
ADDITIONAL DISTRIBUTION
COPIES TO:
HONG KONG GOVERNMENT OFFICE 6 GRAFTON STREET W 1