CONFIDENTIAL
EUROPEAN ECONOMIC COMMUNITY/GENERALISED SCHEME OF PREFERENCES, AND OUTLOOK FOR TEXTILES
Heliii
Background
1.
In February 1971 we agreed with the Six, during the enlargement
negotiations, that Hong Kong should be admitted to the Community's
Generalised Scheme of Preferences (GSP), subject to the exclusion of
her textile and footwear exports. As some of Hong Kong's principal
competitors among the developing countries receive benefits in these
categories, we have, since 1 January 1974, on aligning to the
Community's GSP, been obliged to discriminate against Hong Kong.
Hong Kong is concerned about this, both for its own sake and for the
precedent it sets for other importing countries (ie the USA and Japan)
in their generalised preference schemes. In accepting this arrange-
ment in 1971 our chief negotiator, Mr Rippon, told the Community that
it would be our continuing concern to avoid discriminating against
Hong Kong in favour of her principal competitors among the developing
countries. Mr Rippon also informed the Governor of Hong Kong that we
intended to pursue the aim of eliminating discrimination against the
dependency in our technical contacts on the adaptation of our scheme
to that of the Community and in the annual reviews.
2.
The Hong Kong authorities reminded us of these undertakings early
in 1973 and asked us to press for the inclusion of their textiles and
footwear in the EEC's GSP. After careful examination Ministers agreed
in
1973 we should that if we were to try to renegotiate the matter te
be defeated and that instead we should align on the terms negotiated
and wait until the 1974 Annual Review before trying to reopen the
Can I
this? say How had unanimity sude have worked?
issue.
13.
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