CONFIDENTIAL
5.
The Germans object to Hong Kong's inclusion because of her highly competitive status. The Hong Kong Government is aware of this and have pressed us to take as strong a line as possible with the Germans. The Permanent Secretary at the DoT raised the matter with Dr Rohwedder, the German State Secretary for Economic Affairs, on his visit to London last week, but did not receive an encouraging
response.
LINE TO TAKE
6*
The PUS could say, if Mr Pao enquires, that, despite resistance from other members of the Community, we have consistently supported the inclusion of Hong Kong textiles in the GSP and are doing so again so far as the 1977 scheme is concerned. It seems that opinion in the Community is moving in Hong Kong's favour but it is not yet clear that there will be general support for her case.
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