XN000022-1974-06-05 — Page 2

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WEDNESDAY, JUNE 5, 1974

NEW BRITISH PLEDGE TO FIGHT DISCRIMINATION AGAINST HONG KONG WELCOMED

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THE DIRECTOR OF COMMERCE AND INDUSTRY, MR. JAMES MCGREGOR, TODAY WELCOMED THE NEW ASSURANCE GIVEN BY THE BRITISH GOVERNMENT THAT IT WILL SEEK SUBSTANTIAL IMPROVEMENT IN HONG KONG'S POSITION IN THE EUROPEAN ECONOMIC COMMUNITY'S GENERALISED PREFERENCE

SCHEME.

MR. MCGREGOR MADE THE FOLLOWING STATEMENT:

+THE COMMERCE AND INDUSTRY DEPARTMENT IS VERY PLEASED WITH THE SOLID SUPPORT FOR HONG KONG INDICATED BY THE FOREIGN SECRETARY, AR. JAMES CALLAGHAN, IN LUXEMBOURG YESTERDAY. THE STRONGLY WORDED ASSURANCE WHICH HE GAVE THAT THE HONG KONG CASE FOR REMOVAL OF DISCRIMINATION AGAINST HONG KONG IN THE EEC GENERALISED PREFERENCE SCHEME WOULD BE SUPPORTED BY BRITAIN IS MOST WELCOME AT THIS TIME.

+THE HONG KONG GOVERNMENT HAS TAKEN EVERY POSSIBLE STEP DURING THE LAST TWO YEARS TO SEEK REMOVAL OF THE DISCRIMINATION AGAINST OUR TEXTILES AND FOOTWEAR IN THE EEC SCHEME,+ MR. MCGREGOR SAID.

+THIS ACTION HAS BEEN TAKEN AT ALL LEVELS OF AUTHORITY FROM THE GOVERNOR DOWN. WE HAD AN ASSURANCE OF THE BRITISH GOVERNMENT'S SUPPORT FOR OUR CASE LAST NOVEMBER WHEN MR. DAVIES, THEN CHANCELLOR OF THE DUCHY OF LANCASTER, TOLD THE EEC COUNCIL OF MINISTERS THAT THE UK

AGAD PRESS 'MOST RESOLUTELY FOR THE REMOVAL OF DISCRIMINATION

AGAINST HONG KONG FROM 1975 ONWARDS. BUT THIS FURTHER STATEMENT BY MR. CALLAGHAN MUST BE VIEWED AS A FIRM DECLARATION OF INTENT of THE BRITISH GOVERNMENT AND AS SUCH IT SHOULD 32 WELCOMED BY ALL HONG KONG TRADE AND INDUSTRY.

+THIS IS GOING TO BE A VERY DIFFICULT TASK FOR THE BRITISH GOVERNMENT+ HE SAID, +AND WE MUST NOT UNDERESTIMATE THE PROBLEM. NEVERTHELESS, MR. CALLAGHAN'S STATEMENT PROVIDES A BASIS FOR OPTIMISM.+

MR. MCGREGOR SAID THAT A CONSTANT DIALOGUE HAS BEEN MAINTAINED WITH THE BRITISH GOVERNMENT TO DEVELOP HONG KONG'S CASE FOR REMOVAL OF DISCRIMINATION.

IN APRIL, MR. DAVID JORDAN, THEN DIRECTOR OF COMMERCE AND INDUSTRY, HAD FURTHER TALKS IN LONDON ON THE MATTER. HE SAID ON HIS RETURN TO HONG KONG:

+IT WAS USEFUL THAT WE HAD ARRANGED TO HAVE THESE DISCUSSIONS IN LONDON AT THIS TIME. WE HAD THE OPPORTUNITY TO PUT FORWARD AND EXPLAIN OUR BELIEF THAT THE EXCLUSION OF HONG KONG'S TEXTILES AND FOOTWEAR IS NO LONGER -- IF IT EVER WAS JUSTIFIABLE OR NECESSARY WHEN JUDGED BY ANY OBJECTIVE CRITERIA.

+OUR_FOOTWEAR EXPORTS ARE DECLINING AND IN TEXTILES WE HAVE NOT FILLED OUR QUUTAS IN THE LAST FEW YEARS. IN OTHER PRODUCTS, ALTHOUGH IMPORTS FROM HONG KONG HAVE BEEN A LARGE PROPORTION OF TOTAL IMPORTS UNDER THE PREFERENCE SCHEME, THEY HAVE BEEN VERY SMALL IN RELATION TO THE TOTAL QUOTAS AVAILABLE.+

/QUESTIONED TAJS