CYPHER/CAT A
CONFIDENTIAL
PRIORITY UK MISSION GENEVA TO FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NUMBER 745
CONFIDENTIAL
6 OCTOBER 1970
247
0613052
[NEUTRAL]
MXK6/12
ADDSD TO F C O TEL NO 735 OF 6 OCTOBER REPTD FOR INFMN TO HONG KONG
CODEL BRUSSELS WASHINGTON TOKYO BRUSSELS (FOR DODGE) AND SAVING TO UKDEL CECD.
FOLLOWING FROM DELEGATION TO UN C T A D SPECIAL COMMITTEE ON PREFERENCES.
TRAN (EEC COMMISSION) SOUGHT OUT JONES TODAY TO SAY THAT, IN LIGHT OF EXCLUSION OF TEXTILES FROM UK OFFER, ALL THE SIX HAD NOW AGREED TO DO NOTHING FOR HONG KONG IN THE G P S. THE FRENCH
WERE ESPECIALLY ADAMANT THAT THE HONG KONG PROBLEM SHOULD BE DEALT WITH EXCLUSIVELY IN THE ENLARGEMENT NEGOTIATIONS. IT WAS VIRTUALLY CERTAIN, THEREFORE, THAT THE REPLY TO THE UAIDE MEMOIRE WOULD BE NEGATIVE.
•
JONES STRONGLY REFUTED THE IMPLICATION THAT BY EXCLUDING
TEXTILES THE UK WAS DOING LESS THAN THE SIX. A FAR HIGHER PROPORTION OF BRITISH CONSUMPTION OF TEXTILES WAS MET BY IMPORTS FROM DEVELOPING COUNTRIES THAN WAS THE CASE WITH THE EEC: AND THIS WOULD CONTINUE TO BE THE CASE BECAUSE THE EEC OFFER WAS SUBJECT TO CEILINGS AND WAS BUTTRESSED BY QUANTITATIVE RESTRICTIONS. HE SUGGESTED THAT A REACTION MORE SUITED TO THE CIRCUMSTANCES OF BOTH THE UK AND US OFFERS MIGHT BE TO EXCLUDE HONG KONG FRUM THE EEC OFFERS ON TEXTILES AND PERHAPS FOOTWEAR AND TO INCLUDE HER ON OTHER ITEMS. THIS HOULD EXCLUDE MORE THAN A HALF OF HONG KONG'S EXPORTS TO THE COMMUNITY.
3. JONES CONTINUED THAT OUR MAJOR OBJECTIVE VIS A VIS HONG KONG
IN THE G P S WAS HER INCLUSION IN THE U.S. OFFER IN ORDER TO AVOID
DISCRIMINATION IN FAVOUR OF HER CLOSE COMPETITORS. HER EXCLUSION
FROM THE AMERICAN SCHEME (WHICH WAS VIRTUALLY BOUND TO FOLLOW FROM EXCLUSION BY THE EEC) WOULD NOT ONLY DO SEVERE DAMAGE TO HER EXPORTS
AND INVESTMENT, IT COULD ALSO DIVERT MORE HONG KONG EXPORTS TO
EUROPEAN MARKETS THAN IF HONG KONG WERE INCLUDED IN THE G P S ALL
ROUND.
CONFIDENTIAL
/4. THE
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