CONFIDENTIAL
(A) THE UPDATING OF THE STATISTICAL BASIS OF THE SCHEME FROM 1968 TO 1971, WHICH HELPS TO INCREASE THE DUTY FREE QUOTAS,
(B) ENLARGEMENT OF THE QUOTAS TO TAKE ACCOUNT OF THE TRADE OF THE NEW MEMBERS,
(C) ADDITIONS TO THE SCHEME OF SOME PROCESSED AGRICULTURAL ITEMS, (D) SOME IMPROVEMENTS TO THE RESTRICTIVE ASPECTS OF THE SCHEME (EG BUTOIRS).
(E) SOME SHORTENING OF THE LIST OF SENSITIVE PRODUCTS.
4. WE HAVE BEEN ARGUING, HOWEVER, FOR AN EVEN SHORTER LIST OF
- PARTICULARLY ON SENSITIVE PRODUCTS, MORE GENEROUS BUTOIRS - SEVERAL ITEMS OF INTEREST TO HONG KONG, THE EXTENSION OF THE SCHEME TO MORE PROCESSED AGRICULTURAL PRODUCTS AND AGAINST ANY UNFAIR TREATMENT FOR HONG KONG PRODUCTS IN THE CALCULATIONS OF CEILINGS. VTHERE IS UNLIKELY, HOWEVER, TO
BE MUCH FURTHER PROGRESS MADE ON THESE ISSUES, ALTHOUGH WE SHALL CONTINUE TO PRESS FOR IMPROVEMENTS OF THIS KIND IN 1974, FOR THE PRESENT THE MOST THAT WE CAN HOPE FOR IS MOVEMENT ON SPECIFIC ITEMS TO WHICH WE ATTACH IMPORTANCE. SUCH ITEMS INCLUDE PLYWOOD,
WHERE
WE NEED AN ENHANCED DUTY-FREE QUOTA TO ACCOMMODATE A GROWING UK
DEMAND, CANNED PINEAPPLE, SOLUBLE COFFEE, COCOA BUTTER, CERTAIN TROPICAL OILS AND DESSICATED COCONUT, VHERE WE WANT A MUCH LOWER PREFERENTIAL DUTY. WE SHALL BE PRESSING FOR MOVEMENT ON SOME OR ALL OF THESE ITEMS DURING THE MEETING OF COREPER ON 25 OCTOBER. AT THAT MEETING WE ALSO INTEND TO STRESS THAT FAIR TREATMENT IN THE CALCULATION OF THE CEILINGS MUST BE ACCORDED TO HONG KONG PRODUCTS- PARTICULARLY BINOCULARS AND TELESCOPES, TAPE RECORDERS AND OTHER ELECTRONIC EQUIPMENT.
6*
5. IN THE WORKING GROUP DISCUSSIONS IN BRUSSELS WE HAVE BEEN WELL SUPPORTED BY THE DUTCH AND THE DANES AND, TO A LESSER EXTENT, BY THE GERMANS, THOUGH THE LATTER HAVE NOT BEEN VERY HELPFUL OVER PLYWOOD.
THE FRENCH, ITALIANS, BELGIANS AND IRISH ON THE OTHER HAND HAVE TENDED TO TAKE A MUCH MORE RESTRICTIVE APPROACH, THE FRENCH HAVE REGISTED OUR ATTEMPTS TO GET IMPROVEMENTS IN THE AGRICULTURAL
- OF SECTOR ON THE GROUNDS OF THE INTERESTS - REAL OR POTENTIAL THE ASSOCIATES AND CAP CONSIDERATIONS. IN THE INDUSTRIAL SECTOR THEY HAVE RESISTED CONCESSIONS TO US ON MALAYSIAN PLYWOOD IN THE INTERESTS OF GABON, DESPITE THE FACT THAT THE CABONESE PRODUCTION IS VERY SMALL, THEY HAVE ALSO TASISTED ON RESTRICTIVE SOLUTIONS TO THE PROBLEM OF CERTAIN FOOTWEAR IMPORTS BECAUSE OF ALLEGED DIFFICULTIES IN THEIR OWN INDUSTRY, AND HAVE TAKEN A PARTICULARLY RESTRICTIVE
2- CONFIDENTIAL
I LINE OVER