TNAG-0135-FCO40-171-Tariff-preferences-for-developing-countries-1969 — Page 91

to the member states. In fact, even the earlier informal Commission offer on llong Kong, which he readily agreed was quite insufficient, had provoked trouble with the member states. Fronch, having at first agreed to it, had subsequently cald that

The the Fatronat were utterly opposed even to something as minimal as that. He thought, however, that some progress might be made by trying to soll his new idees to the Germans. that the dropping of the Community's offer on textiles would make And he also thought it rather easier to do something for Hong Kong since textiles formed such a very large proportion of liong Kong's exporta to the Community.

5. As to the question whether, whon and how we should raise the Hong Kong question more formally (Goldsmith's letter to Jones of 24 September refers) I think we here would advise that the matter should be fully aired in the Paris discussions before discussion beging in UNCTAD. I think Tran is entirely right when he argues that it is only if we raise this question in the presence of the member states as well as of the Commission that the Commission a car. hope to wring from the member states concessions on this question which they are reluctant to make. or confine ourselves entirely to informal exchanges with the

If we keep silent Commission thon it is only too easy for the member states to resist more generous proposals by the Commission and to sweep under the carpet what is, for all of them, an awkward question.

C.0.

D. J. C. Jones, Esq., UKI113, Genova.

R. Britten, Esq., Trade Policy Dept., F.0.0.

(D. H. A. Hannay)

CONFIDENTIAL