GPS 260
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REGISTRY I. 1
27 JUN 1974 MAG.
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27.05
1974
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TO PRIORITY UKREP BRUSSELS TELNO 612 OF 25 JUNE/INFO ACTING GOVERNOR HONG KONG, UKMIS GENEVA (FOR PEARSON) AND BRUSSELS (FOR DODGE) INFO SAVING OTHER EEC POSTS.
16 YOUR TELEGRAM NO 2938: GENERALISED PREFERENCES
1. WE AGREE WITH YOUR SUGGESTION THAT DURING THIS WEEK'S MEETING OF THE COMMITTEE OF PERMANENT REPRESENTATIVES YOU SHOULD RAISE THE QUESTION OF HONG KONG.
2. YOU SHOULD REMIND THE COMMITTEE THAT IN MY STATEMENT TO THE COUNCIL OF MINISTERS IN LUXEMBOURG ON 4 JUNE 1 SAID THAT WE NEEDED SUBSTANTIAL IMPROVEMENT IN THE POSITION OF HONG KONG WHERE AT PRESENT THE U.K. HAD TO DISCRIMINATE AGAINST ONE OF ITS OWN TERRITORIES. YOU SHOULD POINT OUT THAT THE EFFECT OF THE PRESENT G.S.P. IS TO DISCRIMINATE AGAINST HONG KONG IN FAVOUR OF OTHER SUPPLIERS, E.G. KOREA, WHICH ARE ONLY MARGINALLY LESS COMPETITIVE, AND NOTE THAT HONG KONG HAS ONLY A SMALL HOME MARKET AND DEPENDS ON EXPORTS FOR ECONOMIC SURVIVAL. YOU SHOULD THEN WARMLY WELCOME THE INCLUSION OF FOOTWEAR FOR HONG KONG IN THE COMMISSION'S PROPOSALS FOR THE 1975 G.S.P. AND EXPRESS THE HOPE THAT OTHER MEMBER STATES WILL AGREE WITH THIS PROPOSAL. ON TEXTILES YOU SHOULD SPEAK AS PROPOSED IN PARAGRAPH 5 OF YOUR TELEGRAM, THOUGH WE DO NOT THINK IT NECESSARY AT THIS STAGE TO REFER TO THE POSSIBILITY OF HONG KONG EXPORT LIMITATION, AND SUGGEST THAT THIS REFERENCE BE OMITTED.
3. IT WOULD SEEM APPROPRIATE FOR YOUR STATEMENT TO BE FOLLOWED UP BY THE PROPOSED REPRESENTATIONS IN COMMUNITY CAPITALS, AND THE ACTING GOVERNOR HONG KONG MAY LIKE TO INSTRUCT DORWARD AND DODGE TO VISIT CAPITALS FOR THIS PURPOSE. NEXT WEEK (MY TELEGRAM NO 578 TO HONG KONG). WHEN WE HAVE AN ITINERARY FOR THESE VISITS WE SHALL PASS IT TO OUR EMBASSIES AND ASK THEM TO PROVIDE WHAT ASSISTANCE THEY CAN TO DORWARD AND DODGE.
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