TNAG-0133-FCO40-169-Tariff-preferences-for-developing-countries-1969 — Page 117

Trade Policy Dept.

CONFIDENTIAL

No. Stewart

R+BU /1⁄2 was. 12/8

Generalised Preferences and Hong Kong

I had a preliminary word with Mr. Goldsmith about this on 11 February when he 'phoned me about another matter. I had at that stage not had an opportunity to study all the papers and I said I would telephone him again. I did this to-day and before I got properly started Mr. Goldsmith broke in to say that there was another letter in from Mr. Hannay of the U.K. Delegation to E.E.C. in Brussels indicating that the Commission had now changed their mind and were recommending that the Community offer to be put in on 1 March should delete the reference to beneficiaries being limited to the Seventy-Seven. Mr. Hannay had therefore

now come to the conclusion that formal representations by us would be counter-productive. Mr. Goldsmith said that he had replied to Mr. Hannay's letter agreeing with this point and had copied it to Mr. Derek Jones (of the Hong Kong Government) in Geneva. Goldsmith thought that if Mr. Jones were satisfied with this position we need not worry any further.

2.

Since Mr. Goldsmith seemed a little sensitive about our intervention in this matter I took the opportunity to explain to him that we were responsible for Hong Kong's external relations and that, having come in for heavy criticism at the time of devaluation, we simply could not afford to appear to neglect any step which might be open to us to look after Hong Kong's interests in the matter of generalised preferences. Mr. Goldsmith accepted

this.

that

3. I think in the light of what Mr. Goldsmith has said the position about `representations has changed but we will need to study the correspondence with Mr. Hannay to consider whether there is any ground for consulting the Hong Kong Government.

It may well be that since Mr. Jones is fully in the picture we need do no more at this stage. We do not of course know whether the Council of the E.E.C. will accept the advice of the Commission.

Copy to:

Mr. W. S. Carter✓

(W. I. Combs ) 13 February. 1969

CONFIDENTIAL