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MEETING WITH HONG KONG OFFICIALS ON 4 APRIL AT THE DEPARTMENT OF TRADE

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24. Tv

Present :

Hong Kong team

D Jordan

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2

W Dorward

L Mille

G Pearson P Dodge

S T Kidd

J Ng

Whitehall team

Director, Commerce & Industry Dept Deputy Director, Commerce & Industry Dept Deputy Director, Commerce & Industry Dept Representative in Geneva Representative in Brussels Commissioner in London

Government Office, London

P Preston

Dep Sec

J Ingram

CRE 1

Miss K Tait

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C W Roberts

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Miss C H Welch

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G Bradshaw

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Miss L Lowne

CT DM, Dept of Industry

J Pownall

B Lodge,

M Goodfellow

J N Colien

CT D, Dept of Industry CT DA, Dept of Industry HRIOD

FCO

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RENEGOTIATION STATEMENTS

Mr Jordan sought clarification on the implications for Hong Kong arising out of the Foreign Secretary's recent statements concerning the renegotiation of the terms of Britain's entry to the EEC.

Mr Preston explained that Ministers had not yet identified in any detail the precise areas in which Britain sought improvement, but indicated there was a possibility of a general improvement in the Community's GSP from which all developing countries would benefit. Hong Kong was not in the forefront of the new Government's minds, but he saw every reason to expect that it would accept the previous Government's position on Hong Kong vis-à-vis the Community's GSP. He did not think the next meeting of the Council of Ministers, at which Britain's proposals would be made, would take place before May or June.

GSP

Mr Jordon thought Britain had the right to raise the question of Hong Kong more than that of any other developing country: He reasoned that donor countries usually made unilateral offers after consultation (but not negotiation); Hong Kong's inclusion in the Community's scheme was secured by Britain during negotiation at the price of exclusion of the territory's textiles and footwear. It was, unusually, a quid pro quo arrangement.

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