TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 172

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position. The Commission are considering product

exclusions and voluntary control measures put to

M. Tran by Mr. Jones. We cannot be certain that

the EEC will find it possible to accept a

compromise on the lines of the Jones proposals

although there have been unofficial indications

that something on the se lines might be acceptable

(Mr. Denman's conversation of 11 November with

Mr. Di Martino). The se have not been endorsed

by the Hong Kong Government either, and it will

be necessary to learn from the officials present

to what extent the se proposals are acceptable, so

that they can be put forward officially by HMG

on behalf of the colony. (We understand that the

EEC may not be in a position to express their

considered reaction to the se proposals until early

next year.) At present, about 11.5% of Hong

Kong's exports go to the EEC (mainly Germany).

(b) The USA • Despite our repeated representations

to the Administration at all levels, we have been

informed unofficially that President Nixon has

issued a directive to the effect that "Hong Kong

will be excluded from American preferences unless

the other major donors include her." This

negative condition prejudices the outcome against

Hong Kong, and we are continuing to press the

Americans to replace it with "Hong Kong will be

included unless other major donors exclude her".

This would set the required example, and deprive

other major donors of the opportunity to emulate

and shelter behind the unfavourable American

initiative.

In either event, it underlines that

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