RESTRICTED

NO COMMISTON PROPOSALS ON THE TABLE, AND THAT BRUSSELS WORKING METHODS ARE INEVITABLY LENGHTY, SHE SAW NO PRATICAL POSSIBILITY OF

NIYTHING BEING ACHIEVED IN TIME FOR 1975. SHE SUGGESTED THAT THE

QUESTION SHOULD BE TAKEN UP AGAIN EARLY IN 1975 WITH A VIEW TO THE

COMMUNITY'S 1976 GSP SCHEME. EVEN THEN SHE THOUGHT IT WOULD BE

DIFFICULT TO ACHIEVE A COMPREHENSIVE SOLUTION ALL AT ONCE, SHE SPOKE RATHER IN TERMS OF WORKING FOR A SOLUTION OVER TIME,

4. THOUGH TOO MUCH SHOULD NOT BE MADE OF THIS, TOWARDS THE END OF OUR

DISCUSSIONS THERE WAS NEVERTHELESS A FAINT HINT THAT THE FRENCH MIGHT NOT BE TOTALLY OPPOSED TO THE INCLUSION OF HONG KONG ON A

SELECTIVE RANGE OF TEXTILES IN THE 1975 GSP.

5. ON THE PROBLEM OF THE ''SUPER-COMPETITIVES'' MLLE GUYOT SAID THAT

THE FRENCH DISLIKED THE COMMISSION PROPOSALS AS THEY STOOD, 11

PARTICULAR, THEY WOULD FIND IT DIFFICULT TO ACCEPT SIMULTANEUOUSLY ABOLITION BOTH OF COUNTRY TARIFF QUOTAS AND OF THE CURRENT BUTOIR

SYSTEM. IN THIS CONNECTION SHE REFERRED TO POTENTIAL CONFLICT

DETVED THE INTERESTS OF HONG KONG, WHICH WAS BROADLY CONTENT WITH THE 1974 SENSITIVE LIST ARRANGEMENTS, AND THOSE OF THE UNITED

KINGDOM WHICH WAITED TO SEE COUNTRY TARIFF QUOTAS ABOLISHED, SHE ALSO SPOKE OF THE POLITICAL DIFFICULTY IN RELATION TO OTHERS SUCH AS

MIGOSLAVIA AND ROMANIA

6. SUMMIG UP OUR DISCUSSION SHE RECOGNISED THAT THE FRENCH COULD

NOT DE TOTALLY MEGATIVE IN RESPONSE TO HONG KONG'S REPRESENTATIONS

AID THOUGHT THAT THE SOLUTION MIGHT BE TO TACKLE FOOTWEAR FOR 1975 AND TEXTILES FOR 1976, HOWEVER SHE EMPHASTED THAT THESE WERE PURFLY

PERSONAL REACTIONS. THE FRENCH INTER-DEPARTMENTAL DISCUSSIONS OR THIS

SUBJECT TENDED TO BE DIFFICULT, WITH THE DREE SANDWICHED BETWEEN THE

ARGUEMENTS OF THE MINISTRY OF INDUSTRY ON ONE HAND AND THOSE OF THE

QUA! D'ORSAY ON THE OTHER, SHE UNDERTOOK THAT THE DOCUMENTATION WE

LEFT WITH HER WOULD BE STUDIED AND SEEMED PREPARED TO CONSIDER THE

POSSIBILITY OF ANOTHER ROUND OF DISCUSSION AFTER THE HOLIDAYS, BY WHICH TIME SHE WILL HAVE CONSULTED OTHER FRENCH MINISTRIES CONCERNED.

MONG KONG MAY WISH TO CONSIDER THIS TOEA WHICH WE THINK WOULD BE

USEFUL.

FCO PLEASE PASS TO ALL SAVING ADDRESSES.

TOMKINS

[REPEATED AS REQUESTED]

EUROPEAN ECONOMIC

DEPARTMENTAL DISTRIBUTION

EID

HKTOD

2 RESTRICTED

ADDITIONAL DISTRIBUTION FRAME

COPIES TO

HONG KONG GOVERNMENT OFFICE 6 GRAFTON STREET

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