This

CONFIDENTIAL

an area where there are very strong anxieties

in other member states and it is scarcely realistic to

hope to get very far, apart from footwear, in next

year's scheme.

22. We have not since the Foreign Secretary's

statement raised in Brussels the problem of future years.

There will be considerable reluctance to considering

future years at all, on the grounds that the GSP scheme

is in principle something settled each year in the

light of the situation as it has by then developed.

23. Our objective is to get complete elimination over

time of the restrictive elements in the scheme, and a

y significantly better arrangement for Hong Kong.

It would be useful if a declaration could be secured

under which the Community would take note that it had

taken a substantial step forward in making the scheme

more valuable to developing countries and would express

its firm intention to continue this process in future

years with particular reference to the interests of the

poorer developing countries.

CONFIDENTIAL

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