w with odd. !

1

TRED agree

complaint if we imposed restrictions on knitwear that were justified on grounds of disruption of the UK market. with the need to respect the strict letter and spirit of the MFA. Moreover we have pointed out that we do not hesitate to seek a derogation from Community arrangements, e.g. on cotton yarn, where our partners do not apply restrictions, but where we wish to continue to do so. EID, while largely sharing these views, point to the need to ensure that any disagreement on Community-wide restraints on knitwear would not have adverse repercussions on our wide textile interests.

14.

The inter-Ministerial Committee on European Questions is likely to have to consider this matter shortly. EID will be consulting FCO Ministers and we will ensure that Lord Goronwy- Roberts is consulted.

26 November 1974

A C Stuart

Hong Kong & Indian Ocean Dept.

сс

Sir D Watson

Mr Braithwaite

Mr Cloake

CONFIDENTIAL

1

+

HONG

6

KONG GOVERNMENT OFFICE

GRAFTON STREET LONDON WIX 3 L B

Qur Ref:

1/14/381AC(C)

24th December, 1974.

A. C. Stuart Esq., C.P.M.,

Hong Kong & Indian Ocean Department, Foreign & Commonwealth Office,

King Charles Street,

LONDON, SW1A 2AH.

RECEIVED IN REGISTRY No. 51

31 DEC1974

HKK 6/598/1

Dear Andres Алднею

I enclose for your information a set of press cuttings on Hong Kong reactions to the E.E.C. G.S.P. arrangements for 1975 which I have received from the Director of Commerce and Industry.

SAWJ/AMS

Чех

S. A. Webb-Johnson for Commissioner

ри

12.

215

L

Dut

30/2

Wlr. the kid (1)

TELEPHONE: 01-499 9821

CABLES: HONGAID LONDONWI

Translation

Extract from Wah Kiu Yat Po dd. 14.11.74

WITH PREFERENCE TREATMENT GRANTED BY EEC

SALE OF HK RUBBER & PLASTIC FOOTWEAR

IN EUROPE NEXT YEAR WILL BENEFIT SLIGHTLY

HK products find it hard to compete with Korean,

Singapore, Malaysian and Taiwan products for

markets because of higher production costs.

HK merchants and industrialists are disappointed

at the exclusion of our textiles from the

preference scheme.

The EEC will expand its preference scheme next year and HK....

made rubber and plastic footwear will be included. However, we do not

expect any big benefits since the production costs of our footwear are

high and the competitive power is therefore weaker than similar products

of the neighbouring regions. Besides, HK merchants are disappointed

at the exclusion of our major export textiles from the preference

scheme.

According to the merchants concerned, the inclusion of HK-

made rubber and plastic footwear for export to EEC regions in the pre-

ference scheme is undoubtedly a piece of good news. But they think

that the benefit will not be big. When HK gets such treatment, it means

Taiwan, Singapore, S. Korea and other developing countries will also be

accorded similar treatment, thus strengthening the competitive power of

/ their

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