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Hong Kong and the EEC

13. We are committed to seeking substantial improvements for Hong Kong in the enlarged EEC. Hong Kong already benefits under most of the Community's Generalised Scheme of Preferences. In terms of total duty remitted, only Yugoslavia receives greater benefit than Hong Kong. The scheme will be extended in 1975 to cover some Hong Kong footwear and we intend to press for the extension of the scheme to Hong Kong's textiles in 1976.

14.

Hong Kong will also be negotiating with the Community for the conclusion of a bilateral agreement for the regulation of Hong Kong's textile exports under the GATT Multi-Fibre Textile Arrangement.

We intend to use our influence as far as

possible towards the achievement of greater liberalisation for Hong Kong's textile exports in keeping with the spirit of the Multi-Fibre Arrangement.

DEFENSIVE SUPPLEMENTARIES

Defence

(each

an a

separate sheet). +4

15. As my rt. hon. Friend, the Secretary of State for Defence, told the House in his statement on the Defence Review on

3 December, we shall maintain our obligations towards our remaining dependent territories. We intend to keep our forces in Hong Kong, although we propose to make some reductions in them and to seek from the Hong Kong Government a larger percentage of their cost when the present cost-sharing agreement runs out in 1976.

Constitutional Development

16. As I told my hon. Friend, the Member for Hull (West), on 30 April, the circumstances of Hong Kong are special and make very difficult any constitutional progress on the path customarily followed by dependent territories. The situation is well understood locally.

The Future of Hong Kong

As my rt. hon. Friend, the Farliamentary Under-Secretary of State, told the House on 6 November, we have no intention of

abandoning Hong Kong.

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