TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 75

Q

CONFIDENTIAL UK EYES ONLY

UNCTAD Generalised Preferences Scheme

7. We are of course hopeful that your difficulties can be

reduced by the development of the UNCTAD preferences scheme,

and you know that we have recently made representations to the

Six, and to the United States and Japan, that Hong Kong should

#

be included in this scheme. Japan appears firmly opposed to

this, but we still hope that the ELC and the U.S.A. may be

prepared to consider our request more favourably.

8. We have recently

announced

that our revised offer must exclude both cotton and non-cotton

textiles, but we have explained that we are ready to reconsider

our. position as soon as the general outlook for international

trade in textiles becomes clearer as a result of further

.f

international di cussions.

Tactics

goi

In the light of some of the reactions we have recently

received from the Six, we now think that we should try to

forestall developments unfavourable to Hong Kong by opening

discussions with the Six on the future regime for Hong Kong at

a fairly early stage in our negotiations, taking the line

that your problems in relations to an enlarged Community must

be discussed as a whole, including both tariffs and

quantitative restrictions. We should have no illusion that

there will be much give in the Community's position, but

discussion of Hong Kong's problems as a whole in the context

/both

CONFIDENTIAL UK EYES ONLY

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