TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 132

be doubly handicapped if excluded by

other donor countries.

3.

We have the following observations on the

reasons which have been advanced in favour of

excluding Hong Kong:-

(a) Hong Kong is a territory and therefore

the responsibility of the metropolitan

power

(1) We regard the distinction between

"territories" and "countries" as

irrelevant in the context of

economic development.

(ii) There is no practical alternative

to Hong Kong's dependent status.

Hong Kong remins a dependant

territory for political reasons.

(iii) Hong Kong is a separate customs

area and derives no specific

advantage from the GATT as a

dependant territory. Her exist-

ing preferences in the UK will

disappear if the UK offer is

maintained.

(iv) According to an OECD document

published in 1967 (broadly

ร

endorsed by Ministers) "any

country, territory or area may

claim developing status"

•

(b) Hong Kong is not "developing"

(i) with the exception of a limited

range of manufactures, Hong Kong

is far closer to the concept of a

developing country than a

developed one.

*

CONFIDENTIAL

1

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