TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 191

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PRIORITY UK MISSION GENEVA TO FOREIGN AND COMMONWEALTH OFFICE

11 SEPTEMBER 1970

TELNO. 663

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ADDSD TO FCO TELNO. 663 OF 11 SEPTEMBER REPTD FOR INFMN TO UKDEL EC BRUSSELS, HONG KONG, UXDEL OECD.

UKDEL EC TELEGRAM TO FCO NO. 378

HONG KONG AND GENERALISED PREFERENCES

FROM JONES

MY IMPRESSION FROM ECHOES I HEARD IN OECD IS THAT CHRIS- TOFAS COULD WELL TAKE THE OPPORTUNITY TO UNDERLINE TO SIGRIST THE ADVANTAGE TO THE ENLARGED COMMUNITY (OR EVEN THE EXISTING COMMUNITY) IF HONG KONG WERE TO BE GIVEN PREFERENCES IN THE UNITED STATES. AT PRESENT 42% OF HONG KONG'S TOTAL EXPORTS CO TO THE US AND 25% IN NON-TEXTILE, NON-SHOE PRODUCTS, ON WHICH THE US WILL GIVE GENERALISED PREFERENCES (THESE FIGURES ARE NOT, GENERALLY KNOWN IN COMMUNITY CIRCLES). IF HONG KONG IS EXCLUDED BY US SHE COULD BE SEVERELY HIT BY COMPETITION FROM TAIWAN AND KOREA AND OTHERS, INCLUDING MEXICO, AND EUROPE COULD FEEL THE RESULTING PRESSURE. ISSUE COULD THEN BECOME MORE DIFFICULT TO RESOLVE IN ENLARGEMENT NEGOTIATIONS.

2. IF THE COMMUNITY REFUSES TO INCLUDE HONG KONG THERE IS NO HOPE OF THE US DOING SO AND THE PROBLEM IN THE NEGOTIATIONS WILL BE EVEN MORE ACUTE.

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