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Copies to :-

Hong Kong Government

Office

6 Grafton Street

YOUR TEL NO 1017: HONG KONG AND THE GENERALISED SCHEME OF PREFERINCES

1. We do not agree that it would be appropriate to seek to establish a link between the Generalised Scheme of Preferences (GSP) and the

Multi-Fibre Arrangement (MFA), at any rate for the time being.

It is correct that the Community envisage negotiating an MFA Article 4-

type agreement on textiles with Hong Kong, just as it does with India,

Pakistan and Korea, and that there would be serious objections from some Community Members (ourselves included) if you were to insist

But we on restraints being justified under Article 3 of the MFA.

doubt whether such a tactic would enable progress to be made for

Hong Kong on the GSP front.

/2.

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