TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 167

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CONFIDENTIAL

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3. THE AIDE MEMOIRE ON HONG KONG SUBMITTED TO THE EEC STATES (SUBPARAGRAPH 11) THAT ''THERE IS GOOD REASON TO BELIEVE THAT, IF THE EUROPEAN COMMUNITIES INCLUDE HONG KONG, THE UNITED STATES MIGHT WELL AGREE TO INCLUDE HONG KONG IN THEIR SCHEME''. YOU

MAY SAY THAT WE HAVE SINCE BEEN INFORMED THAT THE FORMULA ON THE

INCLUSION OF HONG KONG IN AMERICAN PREFERENCES SUBMITTED TO THE WHITE HOUSE FOR DECISION EXPLICITLY MAKES AMERICAN INCLUSION

OF THE TERRITORY CONDITIONAL ON ITS INCLUSION BY THE EEC (SEE WASHINGTON TELNO 2575). A DECLARATION TO THIS EFFECT BY THE

EEC AT THIS POINT OF TIME MAY BE THE LAST OPPORTUNITY TO OBTAIN

A FIRM AMERICAN COMMITMENT TO DO LIKEWISE. AS THE AIDE MEMOIRE

MADE CLEAR, THE ECONOMIC CONSEQUENCES FOR EUROPE OF AN AMERICAN EXCLUSION OF HONG KONG FROM PREFERENCES, WOULD BE DISADVANTAGEOUS.

4. DEFENSIVE. SIGRIST MAY POINT OUT THAT THE AIDE MEMOIRE OPENS

WITH AN EXPRESSION OF HMG'S WILLINGNESS TO CONSIDER BRINGING

THE UK PREFERENCE OFFER INTO LINE WITH THAT OF THE EEC ''SO FAR AS

THIS IS POSSIBLE''. HE MAY ASK WHY THE EEC SHOULD AGREE TO OUR

REPRESENTATIONS ON BEHALF OF HONG KONG WHEN THE UK REVISED

OFFER NOW TABLED IN OECD FAILS TO FOLLOW THE EEC-TYPE SCHEME OF

DUTY QUOTAS AND NO EXCEPTIONS. YOUR ANSWER TO THIS ARGUMENT

SHOULD BE ALONG THE LINES OF FCO TO UKDEL OECD TELNO 38, EMPHASISING

THAT WE ACCEPT THAT THE ENLARGED EEC WILL HAVE TO ADOPT A COMMON

POSITION ON GENERALISED PREFERENCES.

DOUGLAS-HOME.

INTERNATIONAL TRADE DISTRIBUTION

T.P.D.

E.I.D.

H.K.D.

CONFIDENTIAL

COPIES TO:

MR. R. GENCCHIO, CRE1 BOT.