TNAG-0240-FCO40-276-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 237

Committee meeting on 16 July. An acute problem in this sector

is the position of Hong Kong, which now faces the threat of

exclusion from the preference offers of several major donors at

a time when it has to withstand growing competition from lower

cost economies like those of South Korea and Taiwan.

In addition to general arguments as to the desirability

of including Hong Kong in the generalised preference scheme, the

following points relating particularly to the current situation of

the United Kingdom as an applicant for membership of the

European Communities are of real importance; and Her Majesty's

Government would hope that the Commission and Member States of

the European Communities would give them the fullest consideration

before coming to any decision as to the European Communities'

attitude on beneficiaries:

(i) Hong Kong's traditional exports to the United

Kingdom market already stand to suffer as a result of

United Kingdom entry into the European Communities.

injury would be increased if the United Kingdom, as a

result of harmonising its generalised preference offer

with that of the European Communities, had to exclude

Hong Kong from the list of beneficiaries.

This

(ii) It would, in Her Majesty's Government's view, be

advantageous for both the United Kingdom and the European

Communities to deal with Hong Kong in the context of the

generalised preference scheme, where the accepted

principle of "burden sharing" among donors would lighten

the load. A decision by the European Communities to

exclude Hong Kong from the scope of their offer would

/certainly