TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 28

J. Cowperthwaite said it was historically a

step backwards for Hong Kong to be classed as

for

an assembly factory/such items, and it was more objectionable to be excluded on these

grounds at than on competitive grounds.

Hong Kong industry would not acquiesce in such

a classification, which could be and would be

at the appropriate time

challenged Mr. Denman and Mr. Lam suggested

that this group of items should be contested,

it

A

and the Chairman pointed out that the EEC sought to adopt it is technique

they would probably require Hong Kong not to chal-

as part of a package deak

lenge the rules of origin disqualification

part of the package. If it went uncontested,

A

hosevac, Hong Kong would be stuck with it in

}

the U market too. In conclusion it was agreed

4

to probe the ESC thinking behind this group

of items, hot ruling out the possibility of a of items

genuine misapprehension or mistake on their

part.

of lodel 229

9. On paragraph 3 (iv), the Governor said

that Hong Kong could not object, though he hoped surveillance could also work both ways,

restoring preferences where damage was caused.

Mr. Hannay suggested that the list was mainly

presentational device whereby the Commission

aimed to soothe the French.

pothe

Approaches to Japan

!

10. Mr. Britten said that the point at issue

here was whether we could now put concrete

proposals to the Japanese as a means of keep-

ing them in play. The Governor favoured this

course, while Mr. Lam feared it might provoke

a Japanese negative prematurely; he would prefe

to sound them out at the OECD Trade Committee

next week before we made any move. Mr. Jones

6 -

4

$