TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 79

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-vis the ELC on Codel tel. no. 229. With

regard to paragraph 3 (I) (complete exclusion of Hong

Kong on all textiles and shoes), the Governor listed

three possibilities:

(i) that the UK should urge the 2.0 to exclude

textiles and shoes entirely "rom their offer

(ii)

(iii)

that the exclusion of Hong Kong's close

competitors (South Korea, Taiwan, Singaporej

should be urged

that at worst, Hong Kong should be excluded

item by item on the basis of performance,

and that subject to this, there should be

regular reviews to assess possible damage

and consider remedies.

Hong Kong strongly favoured course (i) above.

3. Mr. Lam made it clear that the UK's exclusion of

textiles put us in no position to influence the EEC in

this matter, and that in any case, we wished the Com-

munity to maintain even their limited offer on textiles

which were of benefit to other Commonwealth countries.

On (ii), the Governor stated that inclusion of her main

rivals by the EEC on textiles ad footwear would be

discrimination against Hong Kong. Whis was not denied

in the course of general discussion, which established

overtheless that,

(a)

there was little evidence, despite Dr.

Dahrendorf's comments in Hong Kong, that the

EPC were considering the exclusion of South

Korea and Taiwan;

(b) UK pressure on the EEC for such a step would

prove embarrassing in UNCTAD even though the

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