IMMEDIATE
CYPHER/CAT A AND BY BAG
GRS 600
FM FCO 091680Z
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FRAME DEPARTMENTAL
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LAST
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Eutu
1974
(MW)
TO IMMEDIATE UKREP BRUSSELS TELNO 911 OF 9 OCTOBER INFO HONG KONG
INFO SAVING OTHER EEC POSTS.
HONG KONG AND THE GENERALISED SCHEME OF PREFERENCES.
1, DURING THE MEETING OF THE WORKING GROUP ON THE GENERALISED SCHEME OF PREFERENCES (GSP) ON 23 SEPTEMBER (YOUR TELNO 4063) THE COMMISSION SAID THAT THEY WOULD NOT BE PROPOSING THE INCLUSION
OF ANY OF HONG KONG'S TEXTILE PRODUCTS IN THE GSP FOR 1975, THIS
IS DISAPPOINTING. WHILE IT WAS PERHAPS UNREALISTIC TO HAVE EXPECTED
THAT AGREEMENT WOULD BE REACHED FOR ALL HONG KONG'S TEXTILES (AS WELL AS FOOTWEAR) TO BE INCLUDED IN NEXT YEAR'S GSP WE HAD
BEEN LED TO BELIEVE THAT THE COMMISSION WOULD AT LEAST INCLUDE
SOME HONG KONG TEXTILE PRODUCTS IN THEIR PROPOSALS. THE HONG KONG
AUTHORITIES WILL BE GREATLY DISAPPOINTED AND WE NEED TO DEMONSTRATE
TO THEM THAT WE ARE DOING WHAT WE CAN TO REMOVE THIS DISCRIMINATION.
2. PROVIDED YOU SEE NO OBJECTION, PLEASE RAISE THIS UNDER QUOTE
OTHER BUSINESS UNQUOTE AT THE COMMITTEE OF PERMANENT REPRESENTATIVE'S
(COREPER) MEETING THIS WEEK. I DOING SO, YOU SHOULD DRAW ON THE
FOLLOWING POINTS:-
(A) SUCCESSIVE BRITISH GOVERNMENTS HAVE DRAWN ATTENTION TO THE NEED
TO END THE DISCRIMINATORY PRACTICE WHEREBY HONG KONG'S FOOTWEAR AND
TEXTILE EXPORTS HAVE BEEN EXCLUDED FROM THE COMMUNITY'S GSP: IN
THE COUNCIL OF MINISTERS ON 6 NOVEMBER 1973 THE THEN CHANCELLOR
OF THE DUCHY OF LANCASTER SAID THAT WE INTENDED TO PRESS MOST
RESOLUTELY FOR HONG KONG'S TEXTILES AND FOOTWEAR TO BE INCLUDED IN THE SCHEME, AND IN A STATEMENT TO THE COUNCIL OF MINISTERS ON
4 JUNE THIS YEAR I SAID THAT WE NEEDED SUBSTANTIAL IMPROVEMENTS
IN THE POSITION OF HONG KONG IN THE GSP:
(B) WE ARE PLEASED THAT THE COMMISSION HAVE PROPOSED THE INCLUSION
OF HONG KONG'S FOOTWEAR EXPORTS AND WE HOPE THAT THIS WILL SOON
BE ACCEPTED GENERALLY BY THE COMMUNITY AS A WHOLE, BUT WE ARE MUCH
CONCERNED THAT THE COMMISSION DO NOT INTEND TO INCLUDE ANY OF HONG
KONG'S PRODUCTS IN ITS PROPOSALS FOR TEXTILE COVERAGE UNDER THE ASP: (C) SINCE THE GSP ARRANGEMENTS FOR HONG KONG WERE AGREED IN 1971 THE SITUATION HAS CHANGED CONSIDERABLY. THE PHILLIPINES, THAILAND AND YUGOSLAVIA, ALL COMPETITORS OF HONG KONG, HAVE BECOME BENEFICIARIES UNDER THE COMMUNITY'S GSP FOR COTTON TEXTILES, WE FIND OURSELVES UNABLE TO JUSTIFY SUCH DISCRIMINATION AGAINST ONE OF OUR DEPENDENT TERRITORIES:
/(D)
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