TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 16

CONFIDENTI AL

-2-

A CHARGE ON THE ENLARGED COMMUNITY. ON THE OTHER HAND, IF HONG KONG WERE INCLUDED IN THE GENERALISED PREFERENCE SCHEME BY THE COMMUNITY (SUBJECT, IF NECESSARY, TO A PROVISO THAT SHE SHOULD ALSO BE INCLUDED BY THE UNITED STATES), THE LIKELIHOOD THAT SHE

WOULD BE INCLUDED BY THE UNITED STATES WOULD BE GREATLY ENHANCED

AND, SINCE 42 PER CENT OF HONG KONG'S EXPORTS CURRENTLY

GO TO THE UNITED STATES, THE BURDEN ON THE COMMUNITY WOULD BE SUBSTANTIALLY DIMINISHED.

3. FINALLY, WE DO NOT SEE ANY INCOMPATIBILITY BETWEEN THE PRESSURE WE ARE EXERTING IN THE CONFERENCE FOR EARLY AND FAVOURABLE

CONSIDERATION BY THE COMMUNITY OF THE INCLUSION OF HONG KONG IN

THE GENERALISED PREFERENCE SCHEME WITH HONG KONG'S ANXIETY

THAT THE COMMON COMMERCIAL POLICY SHOULD NOT BE FIRMED UP IN A MANNER DETRIMENTAL TO HER. IF WE ARE SUCCESSFUL IN GETTING HONG KONG INCLUDED IN THE GENERALISED PREFERENCE SCHEME, WE WILL HAVE SECURED ONE OF HONG KONG'S IMPORTANT AIMS. IF WE ARE UNSUCCESSFUL, THE COMMUNITY MIGHT BE THAT MUCH LESS LIKELY TO ADMINISTER YET

ANOTHER REBUFF BY INCREASING THE ILLIBERALITY OF THEIR COMMERCIAL

POLICY TOWARDS HONG KONG.

SIR J MARJORIBANKS

EUROPEAN ECONOMIC AND

ADDITIONAL DISTRIBUTION:

FRAME

POLITICAL DISTRIBUTION:

3.I.D. H.K.D.

DDDDD

:

CONFIDENTIAL