GRS 820
IMMEDIATE
CYPHER CAT A
FM DUBLIN 111000Z
RESTRICTED
RESCUED IN
No. 51
12 NOV 1974
Entu itk-Ear/use
р
(196)
p.ci
RESTRICTED
[FRAME FILES]
HKK 6/598/1
1974.
- TO IMMEDIATE FCO TELNO 565 OF 11 NOV INFO IMMEDIATE UKREP BRUSSELS
MYTEL 564: FOOTWEAR PREFERENCES FOR HONG KONG
SINCE I USED IN ADDITION SOME MATERIAL DRAWN FROM HONG KONG TEL NO 1121, SOME OBTAINED BY TELEPHONE FROM THE DTI, AND SOME OBTAINED FROM TRADE FIGURES HERE, YOU MAY FIND IT USEFUL TO HAVE TEXT OF MY LETTER DATED 8 NOV TO O'SLATTARA.
BEGINS:
1. WHEN I CALLED ON YOU THIS AFTERNOON WITH RODERICK MCKENZIE, MY COMMERCIAL SECRETARY, ! EMPHASISED TO YOU AND MR SCANLON THE GREAT IMPORTANCE MY GOVT ATTACHES TO SECURING THE INCLUSION OF HONG KONG IN THE GENERALISED SCHEME OF PREFERENCES AS A DENEFICIARY ON FOOTWEAR, IN ACCORDANCE WITH THE PROPOSALS OF THE EEC COMMISSION. I EXPLAINED THAT UNLESS THIS WERE ACCEPTED BY THE COMMUNITY IT WOULD BE DIFFICULT FOR THE UNITED KINGDOM TO AGREE TO THE COMMISSION'S PROPOSALS FOR THE INDUSTRIAL SIDE OF GSP AS A WHOLE. WE HAVE SO FAR SUPPORTED THESE AS BEING A VALUABLE STEP IN IMPROVING THE SCHEME FOR THE MAJORITY OF DEVELOPING COUNTRIES: THEY DO, HOWEVER, CONTAIN SOME ADVERSE ELEMENTS FOR HONG KONG WHICH WILL NEED TO BE OFFSET BY BENEFITS ELSEWHERE, 1.E., FOOTWEAR,
2. 1 EXPLAINED THAT WHILE WE APPRECIATE THE CONCERN OF YOUR AUTHORITIES ABOUT THE POSSIBLE EFFECTS ON YOUR MARKET OF HONG KONG'S INCLUSION, WE DO NOT BELIEVE SUCH APPREHENSION TO BE WELL-FOUNDED. IN THE FIRST PLACE THE COMMISSION'S PROPOSALS ARE VERY MODEST: THE PRESENT GLOBAL GSP FOOTWEAR QUOTA, STANDING AT 29 MILLION UNITS OF ACCOUNT, WHICH YOUR AUTHORITIES HAVE ACCEPTED FOR 1974, IS TO BE INCREASED BY ONLY 2 PER CENT NEXT YEAR, 1.E. TO A TOTAL OF 31.6 MILLION UNITS OF ACCOUNT FOR ALL BENEFICIARIES. HONG KONG'S SHARE OF THIS ENHANCED QUOTA, FOR WHICH HONG KONG WOULD OF COURSE
RESULT OGUST.
/BE COMPETING