TNAG-0240-FCO40-276-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 91

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2

3. YOU MIGHT SAY THAT WE HAVE GOOD GROUNDS FOR HOPING FOR A

FAVOURABLE EEC DECISION IN THE FAIRLY NEAR FUTURE AND THAT THIS

IS BOUND TO INFLUENCE THE UNITED STATES. AS REGARDS THE QUALIFICA-

TIONS WHICH THE EEC ARE LIKELY TO ATTACH TO THEIR ACCEPTANCE OF HONG KONG YOU MIGHT SUGGEST THAT SINCE THE UNITED STATES OFFER

EXCLUDES TEXTILES AND FOOTWEAR, THE EEC WILL PROBABLY DO LIKEWISE. WHAT WE ARE OFFERING THE JAPANESE THEREFORE IS THE EXCLUSION OF

HONG KONG FOR TEXTILES AND FOOTWEAR, WITH CONSIDERATION OF SPECIAL

SAFEGUARDS ON CERTAIN ADDITIONAL SENSITIVE ITEMS.

4. IF THE JAPANESE OBJECT THAT THEY CANNOT WAIT FOR THE DECISIONS

OF THE EEC AND USA AND CANNOT BE EXPECTED TO TAKE ON TRUST THAT

THESE WILL EVENTUALLY BE IN HONG KONG'S FAVOUR, YOU MIGHT SUGGEST THAT THE JAPANESE COULD ADEQUATELY PROTECT THEMSELVES IN THE FOLLOW- ING (OR SOME SIMILAR) WAY. THEY MIGHT QUALIFY THEIR OFFER BY A

RESERVE TO THE EFFECT THAT IT WAS SUBJECT TO MODIFICATION IN THE LIGHT OF THE BENEFICIARY LISTS OF OTHER DONOR COUNTRIES, OR (IF THIS SEEMED NOT SPECIFIC ENOUGH) ADD A RIDER TO THE EFFECT THAT HONG KONG'S INCLUSION IN THEIR LIST WAS SUBJECT TO HONG KONG NOT

BEING EXCLUDED FROM THE LISTS OF OTHER MAJOR DONORS WHEN PUBLISHED.

5. WE GATHER FROM REQUESTS TO DTI AND OURSELVES BY THE JAPANESE

HERE FOR A MASS OF FACTUAL MATERIAL ABOUT THE TRADE AND PAYMENTS

OF THE DEPENDENT TERRITORIES (OTHER THAN HONG KONG) WHICH WE HAVE NOTIFIED AS PRIMA FACIE BENEFICIARIES, THAT THE JAPANESE MAY NOW

BE CONSIDERING INCLUDING DEPENDENT TERRITORIES GENERALLY IN THEIR

SCHEME. THE JAPANESE SHOULD THEREFORE, WE PRESUME, BE PREPARED TO CONSIDER HONG KONG AS AN INDIVIDUAL CASE.

DOUGLAS-HOME

INTERNATIONAL TRADE DISTRIBUTION

T.P.D.

H.K.D.

F.E.D.

W.E.D.

AMER. DEPT.

COPY TO:

0.H. KEMMIS ESQ.,

CRED. DTI

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