CR 350
CRIORITY
HER/CAT A
FM FCC 011745Z
CONFIDENTI L.
148
(HK)
CONFIDENTIAL AND PERSONAL
149
HKK6 B
PA
2
12.1
TO PRIORITY GOVERNOR HONG KONG TEL NO 1895 OF 21 OCTOBER. 1973 FOLLOWING PERSONAL FOR GOVERNOR FROM FR RCYLE.
HONG KONG AND THE COMMUNITIES GSP
1. WE HAVE FOUGHT HARD FOR YOUR INTE PESTS IN WHITEHALL. THE RESULT IS NOT SATISFACTORY BUT IT IS, I THINK, THE BEST AGREEMENT ON CUR POLICY WE COULD, IN PRACTICE, ACHIEVE.
2. MINISTERS HAVE AGREED TO RAISE FORMALLY HONG KONG'S EXCLUSION FROM THE COMMUNITY'S CSP ON TEXTILES AND FOOTWEAR WHEN THE GSP IS DISCUSSED AT THE 6 OVEMBER MEETING OF THE COUNCIL OF MINISTERS (IE BEFORE 1 JANUARY 1974). BUT THE PRIME MINISTER HAS AGREED THAT WE SHOULD CONCENTRATE THE SUBSTANTIVE DEMAND FOR A CHANGE ON THE ANNUAL REVIEW IN 1974, AND IN THE MEANTIME TO PUT THE COUNCIL OF.. MINISTERS ON NOTICE THAT WE WILL PRESS MOST RESOLUTELY AT THAT REVIE FOR THE EXTENSION OF THE GSP TO HONG KONG'S TEXTILES AND FOOTWEAR.
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3. I REALISE THAT YOU WOULD HAVE PREFERRED TO AVOID EVEN TEMPORARY DISCRIMINATION AGAINST HONG KONG. SO WOULD WE, BUT, AS YOU AGREED WHEN YOU WERE HERE, WE SHOULD BE ABLE TO AVOID A LARGE PART OF THE FOLITICAL DAMAGE BY MAKING IT KNOWN THAT WE ARE PRESSING FOR A CHANGE, THOUGH VE MUST NOT GIVE THE IMPRESSION THAT THE CHANCES OF SUCCESS ARE GREATER THAN THEY ARE.
4, AT THE SAME TIME WE ARE ALREADY PRESSING STRONGLY FOR IMPROVEMENTS TO THE EXISTING SCHEME, INCLUDING A SHORTER LIST OF SENSITIVE PRODUCTS AND MORE GENEROUS BUTOIRS, AND AGAINST UNFAIR TREATMENT FOR HONG KONG PRODUCTS IN THE CALCULATIONS OF CEILINGS. I REALISE THAT THESE EFFORTS LO NOT CANCEL OUT THE POLITICAL EFFECT OF DISCPIPIN ATION ON TEXTILES AND FOOTWEAR, BUT THE PRACTICAL TENEFITS FOR HONG KONG'S TRADE MAY WELL FE GREATER THAN FROM A STAUSCLE, WHICH WOULD ANYWAY BE VAIN, TO ELIMINATE DISCRIMINATION PEFORE 1.1.74.
5. THE
CONFIDENTIAL