TNAG-0141-FCO40-177-Hong-Kong-concession--in-Kennedy-Round--on-unmanufactured-to-1969 — Page 30

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DRAFT

AIDE MEMOIRE

In their Aide Memoire of the 18th June 1969, the Govern-

ment of India drew attention to the change in Hong Kong's

arrangements for the import of unmanufactured tobacco, as a

result of which a preferential rate of duty which had existed

previously was eliminated except in the case of Malawi.

H.M.G. invite the attention of the G.0.1. to the

correspondence on this question exchanged between the Counsellor

for Hong Kong Affairs on the U.K. Mission to the GATT and the

Resident Representative of India to the GATT in December 1968.

In his letter of 18th December 1968, the Counsellor set out at

some length the position of the Hong Kong Government in this

matter and in a subsequent letter dated 23rd January 1969, he

confirmed that his Government had seen and endorsed his state

ment.

H.M.G. are unable to accept that this action by Hong Kong

was contrary to the U.K./India Trade Agreement 1939.

By

signing the Geneva 1967 Protocol, of which the Hong Kong

concession on unmanufactured tobacco formed part, the G.0.1.

accepted the consequential changes in any preferential margins

to which India may have been entitled under the Trade Agreement.

While expressing their regret, if the G.0.1. Consider they were

given insufficient information about the details or inadequate

notice that the concession would be part of the Hong Kong offer

H.M.G. maintain that it is not open to the G.O.I. to rely on

the provisions of section 8 of the 1939 Agreement in order to

question the implementation of a Kennedy Round concession which

cannot be divorced from the general multilatgal settlement,

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