GRS 380

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AMPHER CAT A

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UKREP BRUSSELS 122250Z

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200

TH/13/1 1/13/15

1974

TO IMMEDIATE GOVERNOR HONG KONG TELNO. 3-OF 12 NOVEMBER/INFO PRIORITY

1.

F C O INFO SAVING BRUSSELS (FOR BURGESS HK 0).

FOLLOWING PERSONAL FOR GOVERNOR HONG KONG FROM SECRETARY OF

STATE FOR TRADE.

WE HAVE JUST CONCLUDED OUR SESSION IN THE COUNCIL OF THE COMMUNITIES ON THE GENERALISED PREFERENCES FOR 1975 AND I AM SENDING YOU THIS IMMEDIATE REPORT ON WHAT WE ACHIEVED.

2. THE STATEMENT ABOUT HONG KONG WHICH HAD BEEN PREPARED IN ADVANCE WAS IN FACT OVERTAKEN BY AGREEMENTS WE REACHED IN OUR DISCUSSION. WHAT WE DID TODAY WAS TO LAY BY THE HEELS THE OLD. COMMUNITY CONTENTION THAT THE HONG KONG CASE WAS DEFINITIVELY SETTLED IN THE ACCESSION NEGOTIATIONS, AND SETTLED IN SUCH A WAY THAT DISCRIMINATION AGAINST HONG KONG WAS A PERMANENT AND INBUILT

FEATURE.

3. THE COUNCIL AGREED TO ELIMINATE DISCRIMINATION AGAINST HONG KONG FOOTWEAR FROM 1 JANUARY NEXT (EXCEPT FOR LEATHER FOOTWEAR, WHICH, AS YOU HAVE SAID, IS NOT OF GREAT INTEREST TO YOU). CHRISTOPHER SOAMES SPOKE OUT VERY HELPFULLY ON THE DAMAGE WHICH YOU

FEER WERE SUCCESTING COMPARED WITH YOUR NEIGHBOURS AND COMPETITORS. VARIOUS INTERVENTIONS WITH HIM, HOME AND AWAY, HAVE OBVIOUSLY GOT THROUGH. AND WHAT HE SAID ABOUT FOOTWEAR IS ALSO RELEVANT TO

TEXTILES.

4. BUT IT WAS TOO MUCH TO EXPECT THAT THE COUNCIL WOULD SWALLOW TEXTILES IN THE SAME BITE. I EXPRESSED MY GREAT DISAPPOINTMENT THAT THE COMMUNITY WAS NOT ABLE TO MAKE A MOVE AND SAID THAT IT WAS WITH THE GREATEST RELUCTANCE THAT I AGREED TO THE FORMULA: ''THE CASE OF HONG KONG WILL BE REVIEWED WHEN THE COMMUNITY GENERALIZED PREFERENCES SCHEME. FOR 1976 IS DRAWN UP.'' BILATERAL AGREEMENT UNDER THE MULTIFIBRE AGREEMENT WILL PLAY ITS

PART HERE.

THE

YOUR

RESTRICTED

15.

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