TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 25

CONFIDENTIAL

(c)

if this countrees were to exclude Taiwan and

(a)

Soul Korea, which were. Shong American interests, The USA,

!

two countries under reference did not

command widespread political support:

their ldc status had never been

'called in question,

Mr. Hannay pointed out the tactical

disadvantage in complicating the

separate EEC's study of Hong Kong with their

exercise on beneficiaries in general.

Spreading alarm about these countries

would cause yet more alarm about

Hong Kong's competitive power, and

the Chairman and other speakers poin-

ted out gively that Buch notion

would have negative effects for Hong

kong vie à

which was

after all Hong Kong's main prefer-

1

ences target, would be unlikely to include Houghtoup 4. With regard to (iii), Sir J. Cowperthwaite

suggested that Hong Kong should be excluled

only on those textiles items where she 'ejoyed

a large share of the EEC market, but Mr. Harney

pointed out that what progress had been achieved

so far was because of the attraction of a total

exclusion on textiles and shoes. Picking at

the edges of this proposal could well cause it

to fall apart altogether. Mr. Lam and Mr.

Denman stressed the EEC reluctance to get

involved in further complications on textiles.

The main objective was to get enough from the

5.

EEC to induce the Americans to follow suit.

As for the rider on (iii), the Hong Kong

proposal that textile exclusions might be rever-

sed in the light of evident damage (Hong Kong

officials quoted the example of the Australian

preference scheme, which allowed for such