RESTRICTED
GSP FOR TEXTILES IN DUE COURSE IN THE LIGHT OF THE RESULTS OF
BILATERAL NEGOTIATIONS WITH SUPPLYING COUNTRIES ON RESTRAINTS AND
OF PROGRESS ON THE ACHIEVEMENT OF FREE CIRCULATION FOR TEXTILES, X BUT THIS WOULD NOT BE POSSIBLE IN TIME FOR THE 1975 SCHEME. DODGE
SAID THAT HONG KONG WOULD HAVE DIFFICULTY IN ENTERING INTO
Good
Yes
SATISFACTORY NEGOTIATIONS WITH THE COMMUNITY UNTIL THE DISCRIMINATION
ON TEXTILES IN THE GPS HAD BEEN REMOVED,
4.
TRAN MAINTAINED THAT THE SYSTEM OF SPECIAL BUTOIRS TO BE
INTRODUCED IN NEXT YEAR'S SCHEME WOULD NOT DISCRIMINATE AGAINST
HỒNG KÔNG, TONG KONG WOULD BE AFFECTED BY SIXTEEN SPECIAL BUTOIRS
AS COMPARED WITH TWENTY TWO FOR YUGOSLAVIA, THE EFFECT WOULD BE
TO REDUCE HONG KONG POTENTIAL BENEFIT UNDER THE SCHEME BY SOME
2.5 MILLION UNTS OF ACCOUNT TO 31 MILLIONS UNITS OF ACCOUNT,
*
5. TRAN FURTHER FORESAW DIFFICULTIES WITH SOME MEMBER STATES
OVER THE PRODUCTS ON THE SEMI-SENSITIVE LIST WHICH WOULD BE SUBJECT TO SPECIAL BUTOIRS, SINCE THE SMALLER MEMBER STATES FEARED THAT
THE WHOLE SHARE OF, SAY, HONG KONG WOULD GO ON TO THEIR MARKETS.
HE SOUGHT HONG KONG'S ASSISTANCE IN ENABLING HIM TO GIVE THE
MEMBER STATES CONCERNED AN ASSURANCE THAT THIS WOULD NOT HAPPEN. DODGE SAID THAT THIS WAS IN PRACTICE VERY UNLIKELY TO
HAPPEN AND THAT THE SUGGESTION OF SELF-RESTRAINT AMOUNTED TO
FURTHER DISCRIMINATION,
6. TRAN SAID THAT THE HONG KONG MEMORANDUM WOULD BE OF ASSISTANCE
TO HIM IN ARGUING THE CASE FOR FOOTWEAR, AND HE THEREFORE
SUGGESTED THAT THE COMMISSION MIGHT SEND A COPY TO THE COUNCIL FOR
CIRCULATION TO MEMBER STATES. WE AGREED THAT HE SHOULD MAKE
WHATEVER SUE OF IT HE THOUGHT BEST. DODGE PRODUCED A NUMBER OF
FIGURES GIVING EVIDENCE OF TRADE DIVERSIONS IN PARTICULAR TO
KOREA. TRAN WAS FAMILIAR WITH THESE ARGUMENTS BUT MADE IT CLEAR
THAT IN HIS VIEW THE ISSUES WERE NOW POLITICAL AND WOULD NEED TO
BE TAKEN FURTHER WITH THE MEMBER STATES ON A POLITICAL BASIS.
- 2 RESTRICTED -
/ FCO