Reference....
HKK 6/598/1
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Mr
ir Croybon. Mr Stuart 3.r.
CONFIDENTIAL
HONG KONG: EEC GSP
1.
~ Make 12/7
MJ M.
Thanks v. interesting
v.
Des 23/2
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I attended a meeting on 5 July in Mr Ingram's office (DOT CRE1) at which Mr Tran Van Thinh of the EEC Commission was present. Mr Tran, whose responsibilities include the GSP, was visiting London to discuss the Commission's proposals for the GSP, and especially Hong Kong.
2.
This was a very useful meeting and, whilst the Commission's proposals do not go nearly as far as we would like, they nonetheless make a significant step forward particularly in respect of removing discrimina- tion for Hong Kong's textiles. We have already been notified that the Commission will propose giving Hong Kong GSP benefits for footwear. Whilst it is valuable to have the Commission on our side, it is of course the member states who make the decisions. Whilst there is no guarantee that the Commission's proposals will be acceptable, Mr Tran has long experience in the Community and his suggestions have been modified to take account of member states' reactions.
He also
3.
Before setting out his proposals, Mr Tran made some general points. He said that Sir M Palliser's statement in COREPER on 27 June (Brussels telegram no. 3044) was most helpful to the Commission. emphasised that for HMG to stress GSP in the context of renegotiation would inhibit the member states reaching an acceptable agreement in respect of Hong Kong except within the general package of the full renegotiation settlement. He also pointed out that the GSP was the only problem on which the technical members were in a position to overrule the political will of member countries.
4.
For our part, the UK team emphasised the econ- omic and political difficulties for the United Kingdom and Hong Kong of EEC discrimination against our dependent territory. On renegotiation we said that, whilst reference to Hong Kong was made in the Foreign Secretary's major speech on renegotiation in Luxembourg on 4 June, this should also be read in the context of HMG's stated wish to carry on the normal work of the Community, including the annual review of the GSP. Whilst discrimination against Hong Kong was not acceptable to us in the widest renegotiation sense, the means whereby the discrimination was alleviated was, we thought, a matter for the EEC Textiles Working Party We also went over the ground in respect of Hong Kong's dependence on exports in relation to her economic and social development, and brought out the United Kingdom's ultimate responsibility for the well-being of the dependency. also discussed the position of the New Territories and the effect of the EEC decisions on GSP with third countries.
We
CONFIDENTIAL
15.