TNAG-0298-FCO40-334-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 152

PREFERENCES

6. TURNING TO EEC AND COMMONWEALTH PREFERENCES, THE REPORT SAYS

HERE HAS BEEN A TENDENCY IN RECENT YEARS FOR SUCH ARRANGEMENTS .

TO SPREAD, UNDERMINING THE PRINCIPLE OF NON-DISCRIMINATION, GENERALISED PREFERENCES WOULD BE THE BETTER WAY TO ASSIST THE

LOWER INCONE COUNTRIES, AND WOULD REDUCE THE DISCRIMINATION

AMONG THEM THAT ARISES FROM PREFERENCES FAVOURING SOME COUNTRIES

AT THE EXPENSE OF OTHER, NOTABLY THE LATIN AMERICAN. THE REPORT

→

POINTS OUT THAT UNDER THE US PROPOSAL LOWER INCOME COUNTRIES MUST,

IN ORDER TO QUALIFY FOR GENERALISED PREFERENCES, UNDERTAKE TO

ELIMINATE REVERSE PREFERENCES WITHIN A REASONABLE PERIOD.

PRESIDENT'S REPORT

7. IN HIS SHORT COVERING REPORT TO THE CONGRESS PRESIDENT NIXON

SAYS:

ti IN OUR MARKET-ORIENTED POLICY, OUR DOMESTIC GOALS AND OUR

INTERNATIONAL GOALS ARE INTERRELATED, SUCCESS IN OUR STRUGGLE

AGAINST INFLATION WILL HELP TO SAFEGUARD OUR INTERNATIONAL

ECONOMIC STRENGTH, AND ALLOW OUR HIGH PRODUCTIVE ENTERPRISES AND

WORKERS TO COMPETE IN WORLD MARKETS. THE LIBERAL POLICY WITH RESPECT

TO INTERNATIONAL TRADE TO WHICH THIS ADMINISTRATION IS COMMITTED

WILL HELP KEEP PRICE INCREASES IN CHECK HERE WHILE GIVING OUR

FARMS, FACTORIES AND BANKS A PROFITABLE MARKET ABROAD. AT THE

SAME TIME WE HAVE TO MAKE SURE THAT THE BURDEN OF ADJUSTMENT TO

CHANGING CONDITIONS IN WORLD MARKETS DOES NOT FALL ENTIRELY ON A

FEW EXPOSED INDUSTRIES.

1 1

CROMER

INTERNATIONAL TRADE DISTRIBUTION

TPD

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