TNAG-0298-FCO40-334-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 68

r Blaker Bsq MP House of Commona London SW1

CRE. 41214 Copied to 'mo Dexter FCO

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25 March 1971

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Thank you for your further letter of 3 March concerning Hong Kong. You mentioned Hong Kong's anxiety that cotton textiles shipped under quota in late 1971 should not be subject, if they arrived in this country in early 1972, to the new tariff on Commonwealth Preference Area goods. We are currently considering representations from the Hong Kong Government on this subject, but I am not yet in a position to say whether it will be possible to make the concession they are seeking.

You also refer to the ponition of Hong Kong in Community markets under the Generalised Preference Schano, As you rightly say exports of toxtiles and footwear from this souzce will not enjoy the sane privileges in thege markets as those from other developing countries. As I explained to you in my letter of 2 March, howevoz, originally the Six in common with other important donor countries

intended to exclude liang Kong like the United Statos and Japan cxports altogether from the Schete and our people had to work very

v'e hope hazd to persuade them to adopt a more generous attitude. that the considerable improvement on their original ottitwe will be imitated by others. As for the future I think it is too

All donox countries have zade 1: soon to speculate what will happen. clear that their present offers under the Scheme way have to bo revised in the light of developments and I am sure none of them in the Community or elsewhere would now adopt the position that their prosent offer is the maximum gesture they will ever be prepared to pake.

I am sending a copy of this letter to Tony Royle.

ANTHONY GRANT