CONFIDENTIAL
5.
Hong Kong and the GSP
1.
Under the Generalised System of Preferences (GSP) Scheme the EEC allows
imports from developing countries within certain limits without duty. Hong Kong benefits from most of the provisions of this scheme, but is excluded from two
product categories: certain sensitive textile categories and leather footwear.
In both cases the quota is so small that there is little economic loss for Hong
Kong but the Hong Kong Government are rightly concerned at being discriminated against: the exclusions do not apply to her principal competitors, notably South
Korea.
2. On a number of occasions in the past
British Ministers and senior officials
have confirmed that HMG is working to end
this discrimination. The Hong Kong Government have recently asked for reconfirmation of our position. The
instructions to our negotiators in the 1978
round of GSP talks specifically instructed
them to seek the removal of this discrimi-
nation against Hong Kong and DOT Ministers,
who are being consulted, are therefore expected to agree a statement shortly. This will be submitted to the Minister of State
before issue.
CONFIDENTIAL
13.