TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 12

become a charge on the enlarged Community. On the

t hand, if Hong Kong were included in the GPS

by the Community (subject, if necessary, to a pro-

viso that she should also be included by the U.3.)

the likelihood that she would be included by the

J.S. would be greatly enhanced; and since 42 per

cent of Hong Kong's exports go to the U.., the

burden on the Community would be substantially

diminished.

and

3. Moreover, we do not see any incompatibility

between the pressure we are exerting on the Com- munity in negotiations for early and favourable

consideration of their inclusion of long Kong in

the GPS,with your anxiety that the common com-

mercial policy should not be firmed up to your

disadvantage. If we are successful in getting

Hong Kong included in the GPS, we will have secu-

red one of your important aims. If we are unsuc-

cessful, the Community would be that much less

likely to administer another rebuff by increasing

the illiberality of their commercial policy to-

wards Hong Kong.

4. We believe that we must press on with the

Six and aim to get a favourable response before

other major donors have a chance to declare their

final exclusion of Hong Kong. Once this has hap-

pened we see no chance of reversing their decision

either in negotiations or elsewhere. This use of

our negotiating conference with the Six as the

most suitable and, we think, effective way of so-

curing the Community's agreement to includo Hong Kong in the GPS does not mean that we and devoting

032717 E.W.& S.,Ltd. 164m 3/67.

De Cort

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