INDUSTRY AND TRADE
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countries to assist the export of manufactures by the developing countries, include provisions allowing duty-free or low tariff entry for products from beneficiary develop- ing countries.
The form, coverage and other provisions of the schemes differ from country to country and consequently the particular advantages offered vary. Hong Kong has been included as a beneficiary by all the developed countries operating such schemes. except Norway and Finland. Hong Kong has consistently made it clear that it seeks no special advantage under these schemes but objects to being discriminated against in favour of countries which are in a similar state of development and are close trade competitors. Regrettably such discrimination is practised in respect of certain Hong Kong manufactured products by the EEC, Japan, Switzerland and Austria. This discrimination has been the subject of official exchanges, including visits to the countries concerned by officers of the Commerce and Industry Department, and some improvement has been achieved.
The exclusion of Hong Kong from the enlarged EEC's Generalised Preference Scheme covering textiles and footwear was a matter of particular concern which emerged during the year. Under the terms of the Treaty of Accession, Britain was required to conform to EEC practice as regards the scheme from January 1, 1974. The implication of this was that, unless some change was made, Hong Kong was to be excluded from generalised preferences on textiles and footwear by Britain as well as by the Six and the other new members, Denmark and Ireland; while important competitors of Hong Kong were to qualify for the full benefits of the enlarged EEC scheme.
In July, a meeting was held in London between representatives of the British Government and the Hong Kong Government to discuss this problem. In August, a petition signed by seven of the leading trade and industrial associations in Hong Kong was sent to the Secretary of State through the Governor. The petition expressed grave concern over the exclusion of Hong Kong textiles and footwear from the enlarged EEC's Generalised Preference Scheme which would be binding on Britain in 1974. Subsequently, at the EEC Council of Ministers meeting on November 6, Mr John Davies, the British Minister responsible for European Affairs, made a strong statement in which he said that it was no longer acceptable for discrimination to apply against Hong Kong and that the British Government would press most resolutely for the inclusion of Hong Kong's textiles and footwear in the Community's scheme from January 1, 1975.
The United States and Canada have yet to introduce generalised schemes of preferences, although some legislative steps to do so were taken in both countries during 1973.
Following consultations with the United States Government in June and July 1973, the United States-Hong Kong Cotton Textiles Agreement, due to expire on September 30, 1973, was extended for one year. Other one-year textile restraint agreements were concluded with Canada and Sweden.