CONFIDENTIAL
that the Commission did not propose the inclusion of
any of Hong Kong's textile exports in the scheme for
1975. Sir M Palliser in his statement to COREPER on
10 October drew attention to this and asked the
Commission to consider the matter further with a view
to proposing the inclusion of some categories at least
of Hong Kong's textiles for the 1975 scheme as a first
stage towards the elimination of discrimination against
Hong Kong in this sector. I am very disappointed that
revised proposals have not been made.
6. The situation is becoming increasingly difficult
for Hong Kong. Since the Community's scheme was first
introduced in 1971 an increasing number of Hong Kong's
competitors have been admitted to GSP benefits for
textiles and the effect of this discrimination has been
that buyers have diverted their orders away from Hong
Kong to suppliers in countries which benefit from the
scheme. Textiles represent a very important element
in Hong Kong's economy.
7. I hope that even at this late stage the Community
will agree that further consideration be given to
including some of Hong Kong's textiles in the scheme for this year and that, as the Commission have suggested,
a major effort be made during next year's review towards
making really significant progress on ending the
discrimination against Hong Kong in this sector.
8. There is one final point: the proposal to introduce
special arrangements for the so-called super competitive
countries will hit Hong Kong especially hard and if they
are agreed it will mean yet a further element of
discrimination against Hong Kong, If further discrimination
CONFIDENTIAL
/of this
NOTHING TO BE WRITTEN IN THIS MARGIN