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become normal practice within the Community for the interests of

dependent territories to be treated as synonomous with the

metropolitan territory's own interests.

This was a reality we

could not ignore.

6. Mr Jordan wanted the Minister to know that in respect of the

new textile agreement being negotiated within the GATT Hong Kong

would have to make difficulties in respect of a Community

decision. He cited the present position where 80% of Hong Kong's

exports to the Community went to Germany and only 1.6% to France.

He said the Department of Trade and Industry acknowledged the

Hong Kong position.

7. Mr Jordan asked for a statement on the question of Hong

Kong's eclusion of textiles and footwear from the European

Economic Community's Generalised Scheme of Preferences, which he

could make to the press on his return to Hong Kong. He reminded

Mr Royle that in the Executive Council he had said he would take

up this question whilst he was in the United Kingdom. He had

subsequently received letters from various important commercial

bodies in Hong Kong and would be expected to say something. In

this connection he hoped that the United Kingdom could agree that

the revision of the Generalised Scheme of Preferences should be

discussed early in 1974 rather than at the end of the year. He

pointed out that the textile industry were taking orders nine

months in advance and that if a revision were to be effective in

1975 it would be necessary to note this early in 1974. Mr Royle

suggested that a statement should be agreed within the Foreign

and Commonwealth Office and discussed with Mr Jordan.

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