GRS 800
IMMEDIATE
YPHER CAT/A
FM HONG KONG 110830Z
CONFIDENTIAL [FRAME FILES]
;
CONFIDENTIAL
RECEIVED " REGISTR
13 JUN 1974
HKK 61598/1
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PA
/ 1974
12/05
TO IMMEDIATE F C O TELEGRAM NUMBER 642 OF 11 JUNE INFO IMMEDIATE BRUSSELS (FOR DODGE) AND UKREP BRUSSELS ROUTINE UKMIS GENEVA (FOR PEARSON) AND HONG KONG GOVERNMENT OFFICE LONDON (FCO PLEASE PASS).
M IP T: EEC AND GSP.
DRAFT TEXT IS AS FOLLOWS:-
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"'HER MAJESTY'S GOVERNMENT IN THE UNITED KINGDOM HAS RECENTLY
STATED IN THE COUNCIL OF MINISTERS OF THE EUROPEAN ECONOMIC COMMUNITY ITS INTENTION TO PRESS FOR A SUBSTANTIAL IMPROVEMENT
IN THE POSITION OF HONG KONG IN THE COMMUNITY'S GENERALISED SCHEME
OF PREFERENCES.
2. WHEN HONG KONG WAS INCLUDED IN THE SCHEME THAT WAS INTRODUCED ON 1 JULY 1971, TEXTILES AND FOOTWEAR FROM HONG KONG WERE SPECIFICALLY EXCLUDED FROM THE BENEFITS OF THE SCHEME.
3. SINCE THAT TIME EXPORTS OF HONG KONG TEXTILES AND FOOTWEAR TO THE EEC HAVE FALLEN MARKEDLY AND THE TREND CONTINUES DOWNWARDS.
4. THE DISCRIMINATION HAS CAUSED BUYERS INCREASINGLY TO DIVERT THEIR ORDERS AWAY FROM HONG KONG TO SUPPLIERS IN COUNTRIES WHICH
ARE BENEFICIARIES UNDER THE SCHEME.
5. ALTHOUGH THE TARIFF QUOTA AND BUTOIR SYSTEMS LIMIT THE EXTENT TO WHICH CERTAIN IMPORTS FROM EACH BENEFICIARY CAN BE ADMITTED FREE OF DUTY, MONETHELESS WHEN ORDERS ARE PLACED IN A BENEFICIARY COUNTRY THERE EXISTS FOR THE IMPORTER THE POSSIBILITY THAT THE GOODS WILL BE ADMITTED FREE OF DUTY, WHEN ORDERS ARE PLACED IN HONG KONG FOR TEXTILES AND FOOTWEAR THIS POSSIBILITY DOES NOT EXIST AND, INDEED, IS REPLACED BY THE CERTAINTY THAT THE FULL DUTY WILL HAVE TO BE PAID ON ALL CONSIGNMENTS.
69
CONFIDENTIAL
16.