NOT

550

PRIORITY

CYPHER/CAT A

FM HONG KONG 3002207

CONFIDENTIAL [NEUTRAL]

RECEIVED IN

REGISTRY No.52

30 APR.974

HKK6/598/

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45-

F

TO PRIORITY FCO TELNO 478 OF 30 APRIL INFO PRIORITY UKREP BRUSSELS BRUSSELS (FOR DODGE) UKMIS GENEVA (FOR PEARSON) HONG KONG GOVERNMENT OFFICE LONDON (FCO PLEASE PASS).

EEC GSP

FID

have

a

out that the syth will melly

painting out that

لاهما

شکال مدل مسما

لا صفا wd کھانا لمالك

قتل

44)

I make The fune

fiation statement and the

2.5

All wearing

the best five WE HAVE BEEN GIVING FURTHER THOUGHT TO HONG KONG'S POSITION IN

THE EEC GSP IN THE LIGHT OF UKREP BRUSSELS TELEGRAM NO 1577, WITH PARTICULAR REGARD TO OUR PROPOSAL TO PRESENT A MEMORANDUM IN THE CAPITALS OF THE EEC (MY TELEGRAM NO 385) WHOSE TEXT HAS NOW BEEN AGREED WITH THE D.T.I., THE RECENT DISCUSSIONS JORDAN HAD

IN LONDON, AND FURTHER REPORTS WE HAVE RECEIVED FROM SRUSSELS REGARDING THE COMMISSION'S PROPOSALS FOR THE 1975 GSP,

2. IT NOW SEEMS THAT THE COMMISSION'S PROPOSALS WILL NOT ONLY SET ASIDE THE QUESTION OF TEXTILES (AND POSSIBLY FOOTWEAR) UNTIL 1976 BUT WILL ALSO RESULT IN INCREASED DISCRIMINATION AGAINST

ONG KONG IN OTHER PRODUCTS AS WELL. IF SO THE PROPOSALS ARE TOTALLY UNACCEPTABLE. THEY WILL CAUSE REAL TRADE DIFFICULTIES FOR US IN 1975 AND AMOUNT TO A WATERING DOWN OF THE ARRANGEMENTS MADE FOR HONG KONG IN THE ACCESSION NEGOTIATIONS. THERE WOULD ALSO BE AN

EMBARASSING POLITICAL STORM HERE.

3. I AM GRATEFUL FOR THE STRONG LIME YOU HAVE BEEN TAKING WITH THE

OTHER MEMBER STATES ON THIS ISSUE AND WE ARE ANXIOUS TO DO UNATEVER WOULD BE HELPFUL TO REINFORCE YOUR EFFORTS ON OUR BEHALF. AS SEEN FROM HERE, IT SEEMS IMPORTANT, FIRST, TO SHOW THAT THE FEARS EXPRESSED BY THE OTHER MEMBAN STATES AND THE LESS DEVELOPED AMONG

THE DEVELOPING ARE GROUNDLESS IN SO FAR AS HONG KONG IS CONCERNED.

THE TRUTH IS THAT THE PRESENCE OF HONG KONG IN THE ECC GSP HAS

HOT MADE THE SCHEME LESS USEFUL FOR OTHER BENEFICIARIES, INDEED,

BY INCLUDING THE WHOLE OF OUR TRADE IN CALCULATING THE QUOTAS

AND THUS INCREASING THE QUOTAS FOR SOME ITEMS BY MORE THAN WE BENEFIT

CONFIDENTIAL

/ FROM

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