GPS 500
IMMEDIATE
CYPHER/CAT A
FM HONG KONG 080925Z
CONFIDENTIAL
inter & resube's
CONFIDENTIAL
TO IMMEDIATE FCO TELNO 299 OF 8 MARCH, 1974.
FOR DTI.
YOUR TELEGRAM NO CREDA 13.
COMMISSION PROPOSALS FOR GSP.
LAST
REF.
(29)
FOR LAM FROM JORDAN,
NEXT
REF
6/5985/1
маса
RECEIVED IN
REGISTRY No. 51
12 MAR 1974
HKR 6/598/1
33
Discussed with Au Armand the Youde
Аблайт
AS YOU KNOW, WE BELIEVE THAT THE PRINCIPAL EFFECT OF A SCHEME
LIKE THE COMMUNITY'S IS NOT SO MUCH TO GENERATE NEW TRADE AS TO
DIVERT TRADE TO BENEFICIARY COUNTRIES. ANY DISCRIMINATORY ARRANGEMENT, EXCLUSION OR A SPECIAL LOW BUTOIR, IS LIKELY TO HAVE SOME SUCH EFFECT SO LONG AS THE DISCRIMINATION DOES NOT APPLY
TO ONE'S COMPETITORS.
2. I ASSUME THAT TRAN'S PROPOSALS WOULD APPLY TO THE SCHEME
AS A WHOLE. WE WOULD WELCOME (A) AND (B) BUT OUR FEAR IS THAT TO SECURE THEM, (C), WHICH, AS IT STANDS, LOOKS FAIRLY REASONABLE, WOULD HAVE TO BE STRENGTHENED.
3. ANY MORE RESTRICTIVE FORMULA FOR DEALING WITH THE 'HIGHLY
COMPEITIVE' COULD WORK TO OUR SERIOUS DISADVANTAGE AND NOT ONLY
IN TEXTILES. FOR INSTANCE, WHILE THE INCLUSION OF HONG KONG'S TEXTILES AND FOOTWEAR WITH A GENERAL PROVISION THAT A CERTAIN LEVEL
OF PERFORMANCE OVER REPEAT OVER THE BUTO IR WOULD LEAD TO EXCLUSION FROM PREFERENCES, PRODUCT BY PRODUCT, MIGHT ELIMNATE SOME OF OUR COMPETITORS AND US IN CERTAIN TEXTILE ITEMS, IT COULD QUICKLY
CAUSE US CONSIDERABLE DAMAGE. IN THE NON-TEXTILE FIELD
گے
(THE OTHER 50 PER CENT OF OUR TRADE). THE HIGHER THE LEVEL USED, THE MORE LIKELY IT WOULD BE THAT HONG KONG ALONE WOULD BE ELIMINATED.
CONFIDENTIAL
/ 44.