TNAG-0240-FCO40-276-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 15

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press such a step on the EEC (which might how- ever be welcome to the Community's domestic industry) because of the effect it might have on the attitude of the USA. It might possibly encourage the Americans to compensate Taiwan and South Korea at Hong Kong's expense by exclu- ding the latter from American preferences

and Hong Kong's interest in the EEC scheme is mainly as a stepping-stone to inclusion in the

American scheme. We would not of course ob- ject if the EEC decided to match their Taiwan ard South Korea restrictions exactly to those which may be agreed with Hong Kong, but we should wish to see it clearly established that this was because of pressure from domestic industry with- in the EEC, and in no way the result of

pressure by HMG.

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