CONFIDENTIAL
FROM THEM, BECAUSE OF THE BUTOIR LIMITATION, WE HAVE INCREASED RATHER THAN DIMINISHED THE OPPORTUNITIES OF OTHER BENEFICIARIES. NOR HAS HONG KONG SECURED A DISPROPORTIONATE SHARE OF THE BENEFITS. THIS IS BORNE OUT BY THE FACT THAT IN NO CATEGORY WHERE
HONG KONG REACHED THE BUTOIR WAS THE TARIFF QUOTA AS A WHOLE FILLED. IT IS IMPORTANT ALSO TO CORRECT ANY MISTAKEN IMPRESSIONS GIVEN BY
TRAN'S STATEMENT THAT HONG KONG'S AIM IS NOT TO SECURE PREFERENCES BUT TO AVOID DISCRIMINATION. AS A STATEMEMENT OF PRINCIPLE IT IS ACCURATE BUT, AS WE HAVE ALREADY SHOWN (PARAGRAPHS 17 TO 19 OF 35) OUR TELEGRAM NO 386 TO YOU) WHAT APPEARS ON PAPER TO BE
NON-DISCRIMINATORY TREATMENT CAN, IN FACT, GIVE RISE TO CONSID-
ERABLE DISCRIMINATION IN PRACTICE AS FAR AS HONG KONG IS CONCERNED.
*
4. SECONDLY, THE COMMISSION'S PROPOSALS FOR 1975, WHILE GIVING AN IMPRESSION OF GREATER LIBERALITY, DO NOT IN PRACTICE IMPROVE THE BENEFITS FOR THE LESS DEVELOPED AMONG THE DEVELOPING COUNTRIES IN ANY WAY. THEY DO, HOWEVER, MAKE TRADING MORE DIFFICULT FOR HONG KONG ALONE AND WE FEEL THAT THIS SHOULD BE BROUGHT OUT PUBLICLY.
5. 1 AM EQUALLY CONCERNED ABOUT THE LOCAL POLITICAL EFFECTS IF THE COMMISSION HAS ITS WAY. AS YOU KNOW AN "ACTION GROUP HAS BEEN SET UP HERE BY THE ORIGINAL PETITIONERS AND A FEW OTHERS, TO KEEP UP PRESSURE ON THE GOVERNMENT ON THE EEC GSP ISSUE, GREAT STORE IS BEING SET LOCALLY BY YOUR REMARKO ON 1 APRIL IN LUXEMBOURG ABOUT THE NEED FOR SERIOUS IMPROVEMENT OF THE EEC GSP AND THE SPECIAL CONCERN YOU EXPRESSED FOR THOSE DEVELOPING COMMONWEALTH COUNTRIES NOT ELIGIBLE FOR ASSOCIATION. FORTUNATELY YOUR SPEECH AND THE STATEMENT JORDAN WAS ABLE TO MAKE ON HIS RETURN FROM LONDON, HAVE TEMPORARILY MOLLIFIED THE DISSATISFACTION WHICH WAS MOUNTING ABOUT OUR ALLEGED INACTIVITY ON THIS ISSUE. THE DISSATISFACTION, HOWEVER, STILL EXISTS AND IT WILL BREAK OUT AGAIN WITH RENEWED VIGOUR IF ANYTHING LIKE THE COMMISSION'S PROPOSALS BECAME PUBLIC KNOWLEDGE.
6. IN THESE CIRCUMSTANCES A POSITIVE PUBLIC STATEMENT INDICATING SPECIFIC SUPPORT FOR, AND INTENTION TO ACHIEVE, ACCEPTABLE ARRANGEMENTS FOR HONG KONG IN THE EEC SCHEME IN 1975 WOULD EASE THE SITUATION HERE AND ALSO PUT THE COMMISSION AND THE OTHER MEMBERS OF THE COMMUNITY ON WARNING THAT THE LINES ON WHICH THE
IN COMMISSION IS THINKING ARE UNACCEPTABLE. COULD THIS BE DONE I
i
2
CONFIDENT LAT.
/ THE