TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 91

MICKEYIL

H

Mr. Pakenham

CC:

CONFIDENTIAL

Reference........

MTU.15/393/1

In Knee

/414/10 (0.5.)

Mr. Laird (Hong Kong Department) Mr. Heath (Commodities Department) Mr. Gallagher

EEC Negotiations : Hong Kong

th

10

Herewith my comments on the draft brief on

AE (70) 28 which you enclosed with your minute of

8 October. They relate of course to the Generalised Preferences aspect of the paper.

2.

I think that the second sentence of paragraph 2 of the brief should be amended to say clearly that the EEC position has now changed. The sentence might be expanded to read on the following lines:-

3.

"But the position as regards the Generalised

Preferences Scheme has changed significantly for the worse since paragraph 15 of the paper was written. We have learnt confidentially from a source within the Commission that the Six, led by the French, have agreed not to include Hong Kong as a beneficiary. The American position is likely to depend upon the decisions taken by the EEC and Japan. The latter have made no movement and the key to the outcome for Hong Kong looks very much as if it lies with the EEC."

The last phrase of paragraph 2 of the draft brief and the first sentence of paragraph 3 should, I think, be re-drafted to the effect that it is intended to take action to deal with the situation outlined in my previous paragraph. Reference might be made to the recommendation which I understand is to be made that Mr. Rippon should stress the importance of including Hong Kong in the Generalised Preferences Scheme to the Belgians, the Dutch and the Commission next week (Mr. Statham's minute to Sir C. O'Neill of 8 October and his minute to me of the same date). We might also, subject to Mr. Statham's views (I have discussed the matter briefly with him), say that we will consider approaches to the French (and possibly other Governments of the Six) when the results of Mr. Rippon's visits are known.

4. As requested I return the copy of AE(70) 28 which your minute enclosed. May I please have a copy of the brief as finalised and also see the AE minutes in due course? It is important that we should be kept in touch with developments in this way.

(R. G. Britten) Trade Policy Department 9 October, 1970

CONFIDENTIAL

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