TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 155

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insisted on making statements on their position when the draft report to the Council was being considered. These were on familiar lines, i.e. that they would face discrimination if they were excluded and preferences were given to countries whose economies were similar or more advanced who happened to be in the Group of 77. Turkey, in particular, pointed out that her per capita income was only U.S.246 and her per capita experts only $U.S.15, most of which were agricultural products. If Turkey was left out at least twenty ther LDCs with higher incomes would benefit and this would be serious discrimination.

8.

It also seemed to be generally agreed that the OECD countries should do their best to avoid discussion of beneficiaries in the UNCTAD Preferences Committee in order to leave the matter for later consideration in the OECD (whether this will be possible will, of course, also depend on the attitude of the developing countries). The question is expected to be taken up formally at the next meeting of the Trade Committee on 30 November/1 December but before then it was hoped that progress in resolving the problem could be reached in informal discussions.

It was

9. This agreement, of course, has its fuzzy edges. pointed out by several delegates that it conflicted with the idea of having all schemes ready for legislative or other implementing action by some time in October; and some delegations made it clear that they could not finalise their schemes until they knew the lists of beneficiaries of other donors. In this situation, the timetable may be difficult and it may not be possible to hold the position until the end of November. But, however the situation develops, some crucial consultations n beneficiaries are likely to be held between the major donors over the next month or two.

Hong Kong.

10. I am reporting separately on discussions in the corridors on Hong Kong and my assessment of how we now stand.

DJCJ/mmg

Distribution:

Director, Hong Kong (3 copies)

A.L.; A.B.; A.W.

Mr. Kemmis) Board of Trade

Mr.

Mr.

Morris)

Trade Policy Dept.

}

without encls.

FCO

Laird Hong Kong Dept.,

Mr.

Perceval

<<

Mr. Gray UKMIS, Geneva.

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