TNAG-0298-FCO40-334-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 170

FLASH

CYPHER CAT/A

FM HONG KONG 10315Z

1

CONFIDENTIAL

62)

PA

жолг

CONFIDENTIAL

нико

TO FLASH F.C.C. TELEGRAM NO. 64 OF 1 FEBRUARY 1971 AND TO

FLASH CODEL BRUSSELS.

PERSONAL FOR CHANCELLOR OF DUCHY OF-LANCASTER FROM GOVERNOR.

YOUR TELEGRAM NO. 91.

58 63

I FULLY UNDERSTAND YOUR ANXIETY TO SETTLE THIS CUESTION

DEFINITIVELY AS EARLY AS POSSIBLE ALTHOUGH I AM NOT MYSELF

ENTIRELY CLEAR WHY THERE IS THOUGHT TO BE THIS DEGREE OF URGENCY.

NEVERTHELESS, I AM BOUND TO SAY THAT I REMAIN MOST UNHAPPY

AT THE PROSPECT OF ACCEPTING THE E.E.C. PROPOSALS UNRESERVEDLY IN ALL THEIR DETAILS, AS SETTLING HONG KONG'S CASE, WITHOUT OURSELVĖS

HAVING HAD SO MUCH AS A DISCUSSION OF THEM WITH THE SIX, AND,

INDEED, SO LITTLE TIME TO STUDY THEIR IMPLICATIONS MYSELF.

2. WE HAVE NO KNOWLEDGE, FOR EXAMPLE, WITHOUT HAVING EXPLORED THE POSSIBILITIES WITH THEM, WHETHER SOME ALTERNATIVE DEVICE

FOR THE HONG KONG SENSITIVE LIST MIGHT NOT EQUALLY WELL MEET

THE SIX'S DESIDERATA WHILE REDUCING THE ADVERSE EFFECTS ON

HONG KONG. THE PECULIARITY OF THE SIX'S PROPOSALS IS THAT,

WHILE THEY GIVE US A DEGREE OF PREFERENTIAL ACCESS AND ARE

ONSTENSIBLY NON-DISCRIMINATORY, THEY ACTUALLY INCREASE SUBSTANTIAI RATHER THAN REDUCE, THE EXTENT OF DISCRIMINATION ON THESE PRODUCTS

A THOUGH. THE OBJECTIVE OF THE ARRANGEMENTS IS TO REDUCE DISCRIM-

INATION RATHER THAN TO GIVE PREFERENTIAL ACCESS. INDEED IN A

NUMBER OF PRODUCTS THEY IMPOSE A GREATER SHARE OF THE 'BURDEN››

OV HONG KONG THAN DEVELOPED COUNTRIES ARE BEING GENERALLY ASKED

TO ASSUME! AND OF COURSE THIS EXTENDED AREA WILL BE FURTHER

EXTENDED WHEN BRITAIN AND OTHERS JOIN THE E.E.C THESE DISCRIM-

INATORY EFFECTS ARE OBVIOUS AND ARE UNLIKELY TO ESCAPE THE

ERICANS OR JAPANESE. IT WILL PE RECALLED THAT WE REACTED -

INSERIATELY AT THE LONDON MEETING IN NOVEMBER WHEN WE WERE FIRST

TOLD OF THE DIRECTION IN WHICH THE MINDS OF THE SIX WERE

MORKING.

CONFIDENTIAL

•

13. AS TO

!