SOUTH CHINA MORNING POST
OCT 44th 73
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Better policy needed
for exports to E.E.C.
Hongkong has been assured by a long line of visiting politicians and officials
Lord Thorneycroft. Chairman of the British Overscas Trade Board is the latest that Britain's entry into the E.E.C. would benefit the colony by widening the trade opportunities available.
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With good will and high hopes, therefore, Hongkong welcomed Britain's accession to the Common Market even if some businessmen and exporters had grounds for doubt.
To be sure. Hongkong's trade with Britain, Western Germany, Netherlands and Sweden the ambit is wider than just the E.E.C. grown significantly in the past three years.
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But progress has not been uniform and it is evident that quite apart from artificial trade barriers Hongkong does have problems in persuading certain countries, France in particular, to take more of its goods,
Hongkong however does view with very serious concern the difficulties which its exports of textiles and shoes face in competing with those of other developing countries, not only in Europe but Britain in particular.
This is because preferences are accorded to a number of arbitrarily designated “developing countries" which are denied to Hongkong.
The history of this particular snag dates back to 1971 when the UK was negotiating for entry into the E.E.C. and the discussion centered on the status that would be given to the colony. During earlier negotiations Hongkong had hoped to get ̧ associate status but this proved impossible.
It was, however, agreed to include Hongkong in the general
general preference scheme with the exception of textiles and footwear, and as from January I next year Britain as an E.E.C. member has to conferm to this policy. The effect of this will be that whereas other developing countries, including somie of Hongkong's strongest - competitors, receive preference on textiles and shoes Hongkong will be excluded and this carries the additionally invidious distinction that a territory linked constitutionally and traditionally with Britain is unable to obtain preferences in this market over countries with no links whatever,
Obviously this is a matter which Britain must stress strongly in the councils of Europe.
It would be a totally unwarranted discrimination if Hongkong were to be placed on a less favourable basis than its main competitors and this was a point the colony made to the Japanese on a similar issue earlier this year and on which finally it won a degree of acceptance.
We are not asking for favours but only that our exports are not jeopardised by other countries who are given privileges which we are denied.
It is particularly important, moreover, that Britain of all countries should not appear to be discriminating against exports from its own colony; it could create a precedent with excep- tionally serious implications for our trade,
HKR 6/3.