TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 202

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the Embassy have had with your officials, the latter

had expressed the view that legally dependent

territories are the responsibility of the metropolitan

power and hence should be excluded from the scheme.

I must contest the view that dependent status

justifies any discrimination against such territories

in the context of measures designed to help the

ceonomic development of developing countries generally.

The British Government would find such discrimination

particularly difficult to accept in the case of

Hong Kong with its unique dependence on the production

and export of manufactures. Japn's decision in

this matter is likely to have great weight since the

exclusion of Hong Kong by Japan might well lead other

countries which take a much larger percentage of

Hong Kong exports to follow suit on burden sharing

grounds. The consequences would be widespread

discrimination in favour of Hong Kong's competitors

amongst developing countries, with the serious risk

of throats to Hong Kong's social and political

stability in which our two countries have a joint

interest.

3. I very much hope your Government will give

Further earnest consideration to the arguments which

we have put forward and will agree to include

Hong Kong and other dependent territories in the

Japanese scheme.

Ends.

C

(11516) Dd.392077 300m 10/68 G.W.B.Ltd. Gp.863

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CONFIDENTTAL