TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 83

te

techniques

thwaite 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 than on competitive grounds.

Hong Kong industry would not acqui-sce in such

a classification, which could be and would be

at the affrights tim.

challenged Mr. Denman and Mr. Lem suggested

that this group of items should be contested

કે

Chairman pointed out that the wc sought to adopt this Ling

as part of a protege dai would probably require Hong Kong not to chal-

lenge the rules of origin disqualification a

=the

part of the package. If it went uncontested,

however, Hong Kong would be stuck with it in

the US market too. In conclusion it was agreed

to probe the EPO thinking behind this group

of items, not ruling out the possibility of a

conuine misapprehension or mistake on their

part.

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

almed to soothe the French.

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

Japanese negative prematurely; he would prefer

sound them out at the OBCD Trase Committre

next week before we made any move. M Jones

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