TNAG-0136-FCO40-172-Tariff-preferences-for-developing-countries-1970 — Page 6

Reference.

НКК 6/12

169

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Mr. Carter (Hong Kong Dept.)

I have discussed para 2 of 166 briefly with Trade Policy Department. Miss Stoddar says that they have been conscious for some time of the possibility that the American preferences offer might be attractive to some Commonwealth countries. But they have not been thinking of Hong Kong- rather of the Caribbean.

2.

Referring to the question you and I discussed, the conditions on which the U.S. scheme would rest are set out in para 4 of 161. You will see that not only would developing countries still granting reverse preferences be excluded but also the American scheme has to be a common scheme adopted by all major developed countries.

3. It may be that on this account we do not have to take too seriously the question raised by Hong Kong in para 2 of their telegram: they may even be trying to make our flesh creep! On the other hand I think we should consider sending a telegram of warning, as much for the benefit of Washington and Geneva, as of Hong Kong itself, to the effect that we see this policy issue as one in which we would certainly not want Hong Kong to make any move at all without consultation. I have drafted a telegram.

Mar 29/12

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