TNAG-0298-FCO40-334-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 107

CONFIDENTIAL

The EEC offer

2.

You know most of the above, and are probably more

interested in the course of events leading to our accep-

tance of the EEC offer and the considerations involved.

L

:

I

There was a hot debate with the Governor as to whether we

should seek to modify it, which led to a meeting in London

of Hong Kong, DTI and FCO officials on 29 January.

attach the record of this meeting, but will set out the

main points. Apart from their reluctance to suffer

discrimination in any form, the Hong Kong delegation were

concerned:

3.

(a) that origin criteria should not be used to

discriminate against Hong Kong goods, and

(b) that UK acceptance of the EEC offer as a

"definitive solution" for, Hong Kong in the

enlargement negotiations, binding upon the Ten,

should not mean UK discrimination after enlargement

against Hong Kong (and in favour of Taiwan and

!

S. Korea) in textiles and footwear. This they

considered would be provocative for both local

Hong Kong opinion and for Peking.

On 2(a) above, the Hong Kong officials were informed

that the EEC formula on rules of origin criteria, as formu-

lated by the EEC, need not create a barrier to Hong Kong

1

goods if indeed they do meet the specifications on rules of

origin agreed in UNCTAD. EEC member states were probably

under the impression that Hong Kong goods in the categories

/mentioned

CONFIDENTIAL