TNAG-0136-FCO40-172-Tariff-preferences-for-developing-countries-1970 — Page 18

Our reference: Your reference:

GVA/10/8/1

BOARD OF TRADE

1 Victoria Street, LONDON S.W.1 Telex: 25955 Answer Back: BOTHQ LONDON

Telegrams: Advantage London S.W.1

Telephone: ABBеy 7877, ext.

2457

(164)

163)

X

Den Derek,

164/2

10th December 1969

Thank you for your letter of 28th November which reached me only yesterday. Thank you for your summing up of the discussion here chaired by Bob Goldsmith on the issue of the treatment of Hong Kong in the preferences scheme with which I fully agree.

2.

You will wish to know that Ambassador Trezise of the State Department called on the Secretary on Monday on

nday his way to Paris (although I think he never got there) and that, the question of Hong Kong as a cause of difficulty to the United States was mentioned. However a number of other countries around the Mediterranean together with Mexico and Argentina were also mentioned. The Secretary pointed out vigorously that Hong Kong's income per head was lower than that of Argentina and he went on to put in a strong plea for the inclusion of Hong Kong.

3.

There would therefore be little advantage in making further representations in Washington on the same point as Hermann was suggesting in Washington telegram number 75 to Hong Kong of 4th December, repeated to you. We shall have to sit back and wait for this issue to be raised again in the OECD or in a similar meeting when it takes place.

4.

I am sure that we can fully agree that at the end of the day Hong Kong's interests would be better served by selective exclusion under a reasonable "competitive need" formula and it is not impossible that such a device may emerge to deal with problems posed by all the marginal developing countries in your "black list". However you will appreciate that we are not in a position to float any proposals along these lines while we and a number of other countries still subscribe to the self-election principle and when no one has yet formally stated which developing countries they propose to exclude (although Japan have got pretty close to it). My own feeling is that this issue will not come to the fore until the USA and EEC have found what movement there may be in the rigid proposals each has made and until some progress has been made on the issue of existing and reverse preferences.

Yours aver, hven.

0. H. Kemmis

D. J. C. Jones Esc.,

Counsellor (Hong Kong Affairs)

United Kingdom Mission

35-37 rue de Vermont

1202, Geneva,

Switzerland.

c.c. H. Stewart Esq.- Hong Kong Det

F.C.O.