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MILK 6/548/5 D6/1
8.
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I attach a brief on Hong Kong and the EEC's GSP prepared by CRE1, Department of Trade.
9.
Failing substantial progress on textiles, Mr Jordan will look to the FCO to ensure that Ministers make the most in public
statements of whatever is achieved and give bankable assurances of future progress.
There are risks in this. Previous
Ministerial statements of intention to help Hong Kong have staved off present trouble but have given hostages to fortune.
10. The agreement for the 1975 GSP is likely to emerge from the Council meeting on 2 December. There will be sharp disappointment in Hong Kong if this decision is as expected and if it is not accompanied or preceded by reassuring Ministerial statements. Mr Preston agreed that we should try for a joint statement by the Council of Ministers of intent to eliminate discrimination against Hong Kong in 1976. Between now and December we will be discussing this with EID and with the Department of Trade. Failing all else, we will try for another unilateral statement by a British Minister.
Suggested Line to Take
11. We do not know what line British Ministers will be taking in the final discussions leading up to the 1975 GSP. At Mr Jordan's own request these present discussions are being held before officials have submitted to Ministers. Nevertheless, even if UK Ministers are prepared to take a very hard line, it seems objectively unlikely that we shall get more for 1975 than the admission of Hong Kong to the footwear GSP and, conceivably, some small progress on textiles. The new super-competitive concept linked with the proposed reduction of the sensitive list looks as if it could be presented either way in terms of benefit to Hong Kong.
12. We recognise the difficulty that we and the Hong Kong Government will face in explaining in Hong Kong what we have done to carry out Ministers' undertaking to seek the elimination of
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/discrimination.