E. Mr. S
Smfort
THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT
EUM(73)71
October 1973
CABINET
MINISTERIAL COMMITTEE ON EUROPE
COPY NO
HONG KONG AND THE COMMUNITY'S
GENERALISED SCHEME OF PREFERENCES
Memorandum by the Minister of State for Foreign & Commonwealth Affairs
1. In February 1971 we agreed with the Six during the enlargement
negotiations that Hong Kong should be admitted to the Community's
GSP, subject to exclusion of benefits for their textiles and
footwear. Hong Kong's principal competitors among the developing
countries do receive benefits in these categories. This means
that from 1 January 1974, when we align with the Community's GSP,
we will, if we take no steps to remedy the situation, ourselves
have to discriminate against our own colony.
2. When this agreement was made, Mr Rippon conceded in Brussels
that the case of Hong Kong was settled definitively in the frame-
work of the enlargement negotiations. But he went on to say that
Hong Kong was and would remain after enlargement a dependent
territory of the United Kingdom, and concluded: "It follows
from this that it must be our continuing concern to avoid
/discriminating
CONFIDENTIAL