TNAG-0240-FCO40-276-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 216

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10. WE HAVE, OF COURSE, BEEN LOCKING AT THIS FROM THE POINT

OF VIEW OF PRESERVING HONG KONG'S TRADE VIS A VIS OTHER EXPORTING

COUNTRIES, WHEREAS THE PRESENT DIFFICULTIES WITH THE U.S

THE E E C AND JAPAN APPEAR TO ARISE VERY LARGELY FROM THE

CONCERNS OF THEIR UNDERLINE NEXT WORD DOMESTIC INDUSTRIES.

• I

IT

IS, HOWEVER, DIFFICULT TO MAKE PROPOSALS DESIGNED TO MEET THIS CONCERN WHEN WE HAVE NOT BEEN ABLE TO OBTAIN ANY SPECIFIC INDICATIONS OF THE GROUNDS FOR THIS CONCERN NOR THE PRECISE SECTORS IN WHICH IT ARISES. WE SUSPECT THAT GOVERNMENTS ARE BEING CAGEY (CF TOKYO TELEGRAM 795 TO YOU) BECAUSE THEY KNOW HOW WEAK THEIR INDUSTRIES' CASE IS. NEVERTHELESS, I WOULD HOPE THAT SUCH A PROPOSAL AS I HAVE

PUT FORWARD ABOVE WOULD HAVE SOME PRESENTATIONAL VALUE FOR STATE IN ARGUING WITH COMMERCE, AND IN FORMULATING ANY PROPOSALS TO BE PLACED BEFORE CONGRESS, AND I SHOULD THEREFORE BE GLAD IF

WASHINGTON WOULD FLOAT IT INFORMALLY WITH THEIR CONTACTS.

11.

AT THE SAME TIME, I SHOULD BE GRATEFUL IF THEY WOULD, WHILST E PHASISING OUR WILLINGNESS TO BE FLEXIBLE AND CUR ACCEPTANCE THAT THE G P S SHOULD NOT GIVE US VAST NEW ADVANTAGE, TRY TO GET THE AMERICANS TO GIVE US SOME INDICATION OF WHAT THEIR DIFFICULTIES

REALLY ARE.

FCO PLEASE PASS PRIORITY TO WASHINGTON AND ROUTINE TO OTHERS. SIR H. NONMAN-VALKER

[REPEATED AS REQUESTED]

INTERNATIONAL TRADE DISTRIBUTION:

TR.POL.D.

H.K.D.

AMERICAN D.

DDDDD

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