RESTRICTED
ITALIANS WERE IMPRESSED BY TSAO'S INTERVENTION, PENNAROLA SAID THEY WOULD LIKE TO BE AS SYMPATHETIC AS POSSIBLE. HE ADDED MISCHIEVIOUSLY AND AT SOME LENGTH THAT IF THE BRITISH HAD NOT - OPPOSED ITALY IN BRUSSELS ON VITAL ISSUES RECENTLY (HE QUOTED PORTUGUESE TOMATO CONCENTRATE DISPUTE) IT WOULD BE EASIER FOR HIM TO RECOMMEND ITALIAN SUPPORT FOR HONG KONG TO HIS SUPERIORS, IF HONG KONG WAS CANVASSING UNDER BRITISH AUSPICES SHE WOULD HAVE TO ACCEPT BEING REGARDED AS PART OF EEC HORSE-TRADING IN ITALIAN EYES, FULTON INTERJECTED THAT IT WAS UNFAIR TO WEIGH HONG KONG APPROACH TO EEC IN SUCH A BALANCE, PENNAROLA, HAVING HADE HIS
POINT, RETURNED TO MATTER AT HAND AND FLOW OF TALKS WAS NOT
IMPAIRED.
5. THERE WAS AN INVOLVED BUT INCONCLUSIVE EXCHANGE ON COMMISSION'S INTENTION TO CREATE A STATUS OF SUPER-COMPETITIVE SUPPLIERS, DODGE ARGUED THAT WHILE THIS WAS ALLEGED TO BE
NON-DISCRIMINATORY IT WOULD IN REALITY BE GREATLY AGAINST HONG KONG'S INTERESTS. ITALIANS SAID THAT THEY DID NOT REPEAT NOT LIKE THIS PART OF THE NEW PROPOSALS. HOWEVER, THEY EXPRESSED CONCERN THAT NEIGHBOURING GSP BENEFICARIES SUCH AS YUGOSLAVIA MIGHT BE OFFENDED IF ITALY, SUPPORTED HONG KONG'S OPPOSITION TO
SUPER-COMPETITIVENESS,
THEY WOULD HAVE TO TREAD CAREFULLY FOR
POLITICAL, AND ECONOMIC REASONS.
6.
THERE WAS A MEETING OF MINDS ON CUMULATIVE CERTIFICATES OF ORIGIN. PENNAROLA SAID THAT ITALY WAS OPPOSED TO THE IDEA OF SUCH POOLING OF RESOURCES, DODGE POINTED OUT THAT HONG KONG AS A COLONY OF THE UNITED KINGDOM COULD NOT PARTICIPATE.
7% · AFTER A GENERAL DISCUSSION ABOUT TEXTILES, FABIANI SAID THIS
WAS OBVIOUSLY A MAJOR TOPIC AND ASKED FOR TIME TO READ THE
VARIOUS DOCUMENTS DODGE HANDED OVER MANY OF WHICH WERE IN ITALIAN FABLANI HAS ARRANGED A FURNTER MEETING LATER THIS MORNING (19 JULY) AT MINISTRY OF FOREIGN TRADE TO ENABLE HIS COLLEAGUE WHO SPECIALISES IN TEXTILES TO GIVE THIS VIEWS.
*
2
RES PRICTED
/8. FROM