TNAG-0298-FCO40-334-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 41

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3.

sensitive items and not just on the products of special

trade interest to Hong Kong. (Yet others remain at 50%)

UKDel Brussels telegram No 88 confirms that textiles

will be included in the Community's offer with the

exceptions already noted above. The Governor of Hong

Kong has asked us on a number of occasions to press the

Community to exclude textiles altogether from their offer.

We have explained to him several times (notably when he came to London in November last) that we cannot meet this

request. The main reason (there are others) is that the

inclusion of textiles in the Community's offer goes a long

way to meet the problems posed for Asian Commonwealth

countries in relation to their exports to an enlarged EEC.

4. One other point of considerable interest to Hong Kong

is the position of Taiwan and South Korea which are Hong

Kong's principal competitors in many fields. Taiwan, not

t

being a member of the "Group of 77", will not be included

amongst the initial beneficiaries of the Community's scheme

but is left for later consideration. This will please the

Governor but the inclusion of South Korea (which is a

member of the "Group of 77") will not. The Governor is of

course deeply concerned that the EEC offer should not lead

to discrimination against Hong Kong in favour of her competi-

On this we rest upon the personal assurance given by

Mr Rippon that we will pursue this aim both before enlarge-

ment in our discussions with the Community and after

tors.

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/enlargement