TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 29

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reminded the meeting that the Japanese might

implement their GPS sooner than other donors

(promptness mollifying the ldc's for the moag-

reness of the offer itself) and that little

time was left for our approach. In any case,

we might assume that the Japanese would exclude

Hong Kong from their offer simply to ensure

that the US did likewise, so damaging a rival

in the American market. Discussion of possible

Hong Kong retaliation against Japan was incon-

suggested clusive, and the Chairman declared that what-

ever proposals we put to the Japanese for par-

tial inclusion of Hong Kong were likely to delay

rather than provoke the expected negative deci-

sion. Subject to soundings at the Trade Cormit-

tee, a formula should be put to the JapanesỆ

soon.

Reverse Preferences

11. Sir J. Cowperthwaite raised a point "in the

gift of HMC"; that of the reverse preferences

granted by Hong Kong to the UK (on tobacco,

liquor etc). As Commonwealth preference would

disappear after EBC enlargement, Hong Kong would

wish to use her tariff position now to offer the

donor countries some quid pro quo • Mr. Jones

pointed out that the American condition on the

phasing out of reverse preferences still applied

of Mr. Lam agreed that it would be unreasonable,

the UK not to allow Hong Kong to meet this US

condition but that these concessions should

not be handed to the EEC and Japan for nothing,

The Chairman said that tha matter would be

checked out with Ministers, and we would inform

Hong Kong of the result.

Approach to the United States

12. The Governor thought that a partial inclu-