TNAG-0132-FCO40-168-Tariff-preferences-for-developing-countries-1969 — Page 38

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because of language difficulties.

He meant either that imports

from developing countries other than the 77 were excluded from

the developing country statistics on which the calculations of

quotas would be based (and presumably included in imports from

developed countries see para. 2(3) above); or, more radically,

that non-members of the 77 (e.g. Spain, Israel and Portugal)

would not be treated as beneficiaries. On the whole we think that

the first of these alternatives is what he was trying to describe.

Mr. Tran explained that, when the Community submit their "lists" to

the OECD on 1 March, the submission would be very short and would comprise

little more than points (1) to (3) and (7) above, but without details.

3.

When questioned about what would be said on beneficiary countries, he

replied that present intentions were not to mention this point at that stage.

Position of Hong Kong

.4. Mr. Tran admitted that the working hypothesis that Hong Kong should be

excluded had not yet been changed. However, the feeling was gaining

ground in the Commission that to maintain this position would not be

helpful politically, particularly in relation to the United Kingdom. Fears

were being expressed that, if the U.K. were left to bear the "burden" of

Hong Kong alone, this would inevitably diminish the extent to which she could

participate in a generalised preferences scheme. Thought was therefore

being given to how something could be done for Hong Kong which would not

create difficulties for the Community as a whole. As regards the Member

States, the Germans and the Dutch were not opposed to the inclusion of Hong

Kong and were even pressing for it, probably at least partly in the hope

that their relatively large imports from Hong Kong would then be spread a

little more over the rest of the Community. The Belgians and Italians

were opposed to inclusion but, in Tran's view, they could be pushed. The

real difficulty was the opposition of the French. Tran considered that

the U.K. should now begin to exert political pressure generally, but that

this should be especially directed towards changing the French opposition.

/If the

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