TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 81

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

ersals) was found reasonable so long as it

was restricted to the periodic reviews of the

GPS. The Chairman suggested that when the EC

put to us their proposals on Hong Kong, we could

to post yf then introduce such conditions our reaction.

The Chairman summed up this part of the dis-

cussion to the effect that of the suggestions

afvorced by Hong Kong, only the periodic review

seemed really practicable. The Govenor stated

that he could not accept the arguments against

the exclusion of textiles and footwehry for all

beneficiaries. The Chairman replied that in the

last resort it would depend on Ministers, but

that advice in favour of such a course could not

be offered to them. However, the Governor's

fisappointment would be clearly noted.

DZ 446 4

r. Cater raised a technical point of in-

portance to Hong Kong, namely that where the

territory was not a beneficiary in the ESC

scheme, as in textiles and footwear, her per-

fomance should not be included in the calcu-

letion of the corresponding duty quote. This, if would be to enlarge the quote for the benefit

her competitors. Mr. Hanney said that we

ino ini'ormation on EBC intentions on this

molt, and it was unlikely that they had devoted

Phou-ht to it yet. The Chairman observed that

logic would surely permit a quote calculation

in the manner Hong Kong feared. However, this

too could be clarified shortly. EEC domestic

inlustry would no doubt ensure that the quota

med smaller, not larger.

As regards.

7.

MA

the items in paragraph 3 (ii) of Codel

29, Sir J. Cowperthwaite said that these also

accended,

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