TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 84

reminded the meeting that the Japanese might

implement their GPS sconer than other donors

(promptness mollifying the ldc's for the meag-

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 likewice, so damaging a rival

in the American market. Discussion of possible

Hong Kong retaliation against Japan was incon-

suggested clusive; the Chairman declared that what-

ever proposals we put to the Javanese for par-

tial inclusion of Hong Long were likely to delay

rather than provoke the expected negative deci-

sion. Subject to poundings at the Trade Commit-

tee, a formule should be put to the Japanese

soon.

Reverse Preferances

11.

Sir J. Cowmothralle raised a point "in the

gift of HMG"; that of the reverse preferences granted by long long to the UK (on tobacco,

liquor etc). As Commonwealth proference would

disappear after ESC 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

Mr. Lam agreed that it would be unreasonable of

the UK not to allow Hong Kong to meet this US

condition but that these concessions should

not be handed to the EMC and Japan for nothing.

The Chairman said that the matter would be

checked out with Ministers, and we would inform

Hong Kong of the result.

Approach to the United States

: