C

9.

While we fully support the concept that the scheme

should provide enhanced trading opportunities for the least

developed of the developing countries we do not believe

this end should be sought by actions which may be harmful

to the trading interests of more competitive developing

countries and which may, in addition, harm the trading

interests of Hong Kong to the benefit of certain other

more competitive developing countries. We consider that

the existing 'butoir' arrangements already ensure that

these more competitive developing countries, including

Hong Kong, do not obtain a disproportionate share of the

benefits of the Scheme.

3.

10.

In support of this contention we invite attention

to the fact that Hong Kong reached the butoir for 24

categories in 1972 and for 22 categories in 1973. Of these,

21 categories are common to both years, and of the 21, 17

were sensitive categories. In no category in which Hong Kong

reached the butoir, however, was the tariff quota as a whole.

filled. It is clear, therefore, that Hong Kong did not

prevent other beneficiaries from securing benefits and it

is obvious that the present butoir system is achieving its

purpose.

11. Any modification to the Community's Scheme to reduce

the opportunities for the more competitive beneficiaries

would, as far as Hong Kong is concerned:

(a) reduce the compensation secured for Hong Kong

in the accession negotiations:

./(b)

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