10. Hong Kong and the EEC
The main outstanding issue is discrimination against Hong Kong in the Community's GSP for textiles and footwear. We have said that during this year's review we would press resolutely for the elimination of this discrimination.
11. Register of Shipping
The Department of Trade's proposals are being considered in Hong Kong. There is a conflict of interest between Hong Kong shipowners and, particularly, the British Seamen's Unions that may make agreement impossible.
12. Air Services Agreement
The application by the Scandinavian Airline SAS to fly to Hong Kong, backed by the Hong Kong Government, is still pending. SAS have refused to offer any compensation to British Airways. The Hong Kong Government have agreed to try to persuade them to make an / offer.
13. Oil
Largely through the efforts of our Embassy in Jedda, Saudi Arabia have now listed Hong Kong as a friendly country. But this has still to work through into improved oil supplies.
HONG KONG/CHINA QUESTIONS
14. The Chinese "Representative"
The Chinese Government have not raised this with HMG since the elections. But they are likely to do so. They have been given no encouragement to pursue their proposal, which could have serious consequences within Hong Kong.
CONFIDENTIAL
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