5. THE GERMANS AGREED WITH THE COMMISSION PROPOSAL PROVIDED THE GROWTH ON 1974 WAS LIMITED TO 10%. THE DANES SPOKE OF THE
REPRESENTATIONS THEY HAD RECEIVED FROM HONG KONG FROM WHICH THEY FULLY UNDERSTOOD THE COLONY'S DIFFICULTIES. THEY THOUGHT THAT TH COMMISSION'S PROPOSAL WAS A GOOD STARTING POINT. THE
BELGIANS RESERVED THEIR POSITION; THERE WAS A DIVERGENCE OF VIEWS WITHIN THE DEPARTMENTS CONCERNED. THE DUTCH SAID THAT THE ARGUMENTS
WHICH HONG KONG HAD PUT FORWARD IN BILATERAL CONTACT IN THE HAGUE WERE VERY IMPRESSIVE. THERE WAS A DIVISION OF OPINION WITHIN THE DEPARTMENTS CONCERNED AND SERIOUS DISQUIET AT THE GROWTH OF
UNEMPLOYMENT NOTABLY IN THE DUTCH BRABANT. THE IRISH SAID THAT
THEIR INDUSTRY WAS ACUTELY SENSITIVE, THEIR DUTIES WERE OF THE ORDER OF 40% AND THEY HAD A DEROGATION FROM APPLYING GPS TO FOOTWEAR. ALTHOUGH THEY DID NOT SAY SO IT SOUNDED AS IF THEIR
VOICE WOULD BE AGAINST THE COMMISSION'S PROPOSAL. THE FRENCH SAID THAT REFERENCES TO DISCRIMINATION'' WERE MISPLACED. HONG
KONG WAS THE SECOND LARGEST BENEFICIARY UNDER THE COMMUNITY' GPS, IN VIEW OF INDUSTRIAL CONDITIONS THE COMMUNITY SHOULD BE CAUTIOUS. BUT FRANCE COULD PROBABLY AGREE TO THE COMMISSION'S PROPOSAL SUBJECT TO A BUTOIR OF 18% (NOT 20%). THE ITALIANS SAID THAT THEY COULD NOT ACCEPT THE COMMISSION'S PROPOSAL. THEY MUST LEAVE CUT
OF ACCOUNT THE RELATIONSHIP BETWEEN THE UNITED KINGDOM AND HONG
KONG. THE INTERNAL INTERESTS OF THE COMMUNITY MUST WEIGHT MORE
HEAVILY. THEY AGREED WITH THE FRENCH THAT HONG KONG WAS NOT
EFFECTIVELY DISCRIMINATED AGAINST. THE ITALIAN FOOTWEAR INDUSTRY WAS IN SERIOUS DIFFICULTIES. ITS EXPORTS WITHIN THE COMMUNITY AND NOTABLY TO THE UNITED KINGDOM WERE FALLING AWAY. ITALY CONSIDERED
THAT THE PRINCIPLE OF COMMUNITY PREFERENCE MUST BE UPHELD. ΤΟ
ALLOW IMPORTS FROM HONG KONG UNDER PREFERENCE WOULD BE A SERIOUS
SETBACK TO THE ITALIAN INDUSTRY, EVEN ALTHOUGH IMPORTS INTO ITALY ITSELF WOULD PROBABLY REMAIN RELATIVELY SMALL.
6.
!
WE REPLIED AT SOME LENGTH. WE SAID THAT WE COULD NOT TAKE
SERIOUSLY THE OBSERVATION THAT HONG KONG WAS NOT BEING DISCRIMINATED
AGAINST. IT WAS,
IT WAS, AND WE COULD NOT PERMIT THE GROUP TO TAKE ANY OTHER VIEW. LIKEWISE WE COULD NOT ACCEPT THAT THE HONG KONG
QUESTION HAD BEEN SETTLED IN THE ENLARGEMENT NEGOTIATIONS AND WE
WELCOMED THE COMMISSION'S RESPONSE TO OUR OWN AND HONG KONG'S
REPRESENTATIONS. WE COULD ALSO NOT ALLOW THE GROUP TO LEAVE OUT
OF ACCOUNT THE RELATIONSHIP BETWEEN THE UNITED KINGDOM AND HONG
KONG, SINCE THIS WENT TO THE VERY HEART OF THE PROBLEM.
2
RESTRICTED
BRITISH
/MINISTERS