TNAG-0248-FCO40-284-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 156

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Generalised Preferences Scheme

5. A scheme for generalised preferences for developing

countries is under active consideration within OECD and is now

being discussed at the UNCTAD Special Committee on preferences

at Geneva. Both the US and the EEC are reluctant for the scheme

(or schemes) which may finally emerge to be extended to Hong Kong.

Were the scheme to be extended in this fashion, it would

undoubtedly help to overcome a fair number of the problems for

Hong Kong of our entry to the EEC. Discussions continues un

ways of reaching some agreement on this, although the prospects

do not at present appear good. However the UK in presenting our

own illustrative list of preferences made it clear that we

firmly defend the principle that beneficiaries under any scheme

for generalised preferences should themselves elect for the

necessary status as developing countries; and that in our view

this principle should apply to Hong Kong.

6. If Hong Kong were not included in the scheme, it could

be argued that the resultant flow to the UK of Hong Kong exports

unable to penetrate present alternative markets would so strain

the UK import capacity as to make it difficult for us to extend

simultaneously preferences to other developing countries.

British Sovereignty

7.

British entry to the 34C would not affect our constitutional

position in respect of Hong Kong, unless Parliament divested

itself of some of its present responsibilities.

These are

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