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To: Director of Commerce and Industry, Hong Kong.
From: Counsellor (Hong Kong Affairs), Geneva.
Memorandum No.150
308
File No. GVA/4/7
G.A.T.T.
Date: 29 October 1970
Committee on Trade and Development
Group on Residual Restrictions
As the above Group held a further meeting on 22 and 23 October, when I was in Brussels, I was unable to attend. However, I enclose a report made by Mr. Gray (First Secretary, UNCTAD and developing countries in the U.K. Mission) who attended as U.K. delegate.
2.
You will see that, for the most part, the proceedings went not unexpectedly. One point to which I would draw your attention, however, is (h) on page 2 of the Report (sidelined). What this amounted to was that the Indians criticised the Germans for liberalising to Hong Kong under the old OEEC Liberalisation Code while continuing to maintain restrictions against India and other developing countries who did not benefit from OEEC liberalisation in the late 50s.
3. This is a point we will have to watch as, if it develops into one of the Indian hobby horses, they are liable to ride it until it drops dead - and even then continue to flog the carcase. I understand from Mr. Gray that the point was rather glossed over at the time, partly because most of the Group did not understand what it was all about.
4.
I think, however, that I have already drawn your attention to what seems to me to be devel●ping into a persistent Indian whispering campaign against Hong Kong in the Geneva corridors. I have it on good authority that, during the recent preferences meeting, they lobbied both the U.S. and the EEC delegations to exclude Hong Kong from the GPS. I have alsə nəticed a significant cooling in personal relationships towards myself by Indian delegates, even those who have known me for a number of years and have been quite friendly in the past.
5. One further point. Included in the fifteen items was man-made fibre textiles and therefore, implicitly, the French restrictions against Hong Kong in this field. This sector was not mentioned by anyone, not even the Koreans who face wider restrictions in Europe than do H⚫ng Kong. I do not think that any harm has been done by not marching into the battleline on this front at the present moment, because the delicate overall position in respect to MMF textiles. Indeed, had I been present, I would, fer tactical reasons, have maintained a discreet silence. Furthermore, having had a talk with Colmant yesterday, I have other reasons for believing that at this juncture we should go a little easy
/over
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