TNAG-0134-FCO40-170-Tariff-preferences-for-developing-countries-1969 — Page 185

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Mr. Carter

Many thanks.

ANE

PA. "Perferences

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Ar skwart

Sir Arthur /Galsworthy

Your endorsement on FCO telegram No.157 to Canberra, copy

attached.

•

2. I am afraid that we cannot be sure that Hong Kong will be accepted as a "developing country" At present the policy of self-election applies (as agreed by OECD at Ministerial level) and

Hong Kong is obviously content with this. The indications are against any direct challenge to her status (which would be most awkward for us). But even if Hong Kong gains acceptance as a developing country, there are certain to be reservations on the

part of a number of donor countries. Whatever form of discrimination

against Hong Kong is resorted to, we can be fairly certain that Hong Kong's position will suffer some erosion.

3. So far not all the developed countries have made their offers of preferences. The Americans show signs of being particularly

slow to come forward. But at least we can say that no-one has so

far specifically excluded Hong Kong from their list of beneficiaries. The position is therefore that the horse trading has still to take place when there will be opportunity to argue Hong Kong's case.

4. In the past Hong Kong has taken the view that her interests would not be suited by a scheme of generalised preferences. She prefers the protection of the most favoured nation principle of the GATT and Commonwealth preferences. However, she knows that there

must be a scheme and we are fully informed as to the extent to

which her interests are best served by the various alternative possibilities. Mr. Jones is, of course, carefully watching over the Colony's interests in Geneva.

Js. Carles

V

(W. S. Carter)

Hong Kong Department

RECEIVED IN

15 April, 1969

Copy to: Mr. Moreton

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