TNAG-0136-FCO40-172-Tariff-preferences-for-developing-countries-1970 — Page 20

C. & I. 369B 2700486

2,000-3/67-B55562

TEL.

TELEGRAPHIC ADDRESS:~-~~-

"PRODROME GENEVA FOR JONES"

RESTRICTED

UNITED KINGDOM MISSION,

35-37 RUE DE VERMONT.

1202, GENEVA,

SWITZERLAND.

لوفد

OUR REF.:

YOUR REF.:

196

5. To put it shortly, Hong Kong's position all along has been a defensive one, namely not to be discriminated against vis-b-vis her competitors. As long as this principle is met she would accept that preferences may well in the end not be available to her on some of her more competitive products. But under a "formula" method or something similar preferences would still, in particular, be available on new products and thus help diversification.

6. We also agreed that having to face an UNCTAD meeting when the OECD countries were still at sixes and sevens was a bore. There is certainly a danger that the 77 will make adverse noises about Hong Kong which will not help matters. But we have no alternative other than to ride that one out and to come back to OECD and point out that the developing countries could hardly be expected to react otherwise in view of their own self interest in the matter and that, in the end, it is the potential donor countries who have to take the decisions.

Yours ever

Levels

(D.J.C. Jones) Counsellor (Hong Kong Affairs)

RESTRICTED

C