TNAG-0134-FCO40-170-Tariff-preferences-for-developing-countries-1969 — Page 187

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified,

PRIVACY MARKING

...In Confidence

DRAFT MINUTE

To:-

Sir Arthur Galsworthy

c.c. Mr. Moreton

Type 1 +

From

Telephone No. & Ext.

Department

The Americans show zigns of benig Renticularly slow to come forward Bas

at lemt in can jaz that move has so for specifically Excluded Hong Kong fam then list of peneficiaries. The Position is their from

Mont

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.

not all the developed counturs have made then

3.

So far we have seen only the offers of preferen- ces, which the EEC will be making (and this off the record). In this offer there will be no definitive

list of benefisiaries but preferences will be dealt

with on a case by case basis, which may amount to

selective exelusion or limitations of particular countries'—preduets,.. 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 GATTA 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

of course carefully watching

The Colony's interests in Geneva.

Ove

(118281) Dd. 391599 1,500м 2/69 Hw.