SPEAKING NOTE
Your Government will be aware that on 14 June the
Government of Hong Kong presented a Memorandum to the EEC
Commission in Brussels, copies of which have, I am informed, been forwarded by the Commission to your Government. For
ease of reference, I have here a copy for your retention.
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2. As you will recall, during the UK entry negotiations,
instead of associate status for Hong Kong, which was not acceptable to the EEC, the Community offered, and HMG accep-
ted, to settle definitively the case of Hong Kong in the
context of these negotiations by including Hong Kong as a
beneficiary in the EEC system of generalised preferences,
except in respect of textiles and footwear.
Thus, Hong
Kong's inclusion in the EEC GSP has a unique element, in that
it represents not a gift as with other beneficiaries but a
negotiated settlement within the accession agreement. Το
a degree, therefore, the EEC has a contractual obligation
towards Hong Kong in this regard.
3. At the time this settlement was reached, HMG drew atten-
tion to its desire to see discrimination against Hong Kong
removed. In November 1973 HMG made clear its view that
discrimination against Hong Kong was no longer acceptable.
This position was restated by Mr Callaghan on 4th June 1974.
4. Your Government will also be aware of the statement made
by the UK Permanent Representative to the Communities,
Sir Michael Palliser, in Brussels on 27 June in the Committee
of Permanent Representatives.
Sir Michael's actual words were:
In accordance with instructions received from the
British Government I should like to make a short. state-
ment about Generalised Preferences for Hong Kong.
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