TNAG-0132-FCO40-168-Tariff-preferences-for-developing-countries-1969 — Page 82

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sensitive products vis-a-vis Hong Kong", a copy of which he had given to

Mr. Hannay in Brussels (we admitted that we had a copy of this list). He

suggested that the general treatment for Hong Kong in relation to products

of this sort might be to accept a certain fixed proportion of the duty free

quota, say 20% or 25%, and that for other products Hong Kong would be

treated like other developing countries (this was my understanding of the

position, but it may be that in regard to certain other products there

would be surveillance on imports from Hong Kong without this necessarily

applying to other developing countries). I pointed out that a quick glance

at the "Hong Kong sensitive list" showed that, for certain products at

least, Hong Kong was not the principal supplier. among developing countries and that for these products she could therefore hardly be considered a

danger to Community producers. At Mr. Goldsmith's suggestion it was then

agreed that we would go through this sensitive list and indicate those

products where we might be able to accept a special treatment for Hong Kong

on the lines indicated above. This is now being done and the annotated list

will be given to Mr. Tran early next week.

7.

Tran also said that it would be of considerable help to him if we

could let him have some arguments in favour of Hong Kong's developing status

which could be used within the Commission and with the Member States.

There was considerable ignorance in the Community of the true facts about

Hong Kong and he felt that a lot of the arguments being used were based on

myth and reputation. I agreed that I would do my best to prepare something along the lines he requested and would let him have it as soon as possible.

Future Procedures

8.

As regards future procedures within the Community, Tran said that there

would be a meeting of Community representatives in Geneva on Monday, 27

January, to discuss the next steps. Thereafter, the question would be

passed to a meeting of the full Commission in preparation for a submission

to the Council of Ministers. In these circumstances, he felt that it was

encumbent on the U.K. to exert the maximum political pressure from now on if it wished to see a reasonably favourable outcome for Hong Kong.

/United States Position

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