TNAG-0298-FCO40-334-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 70

MA H KEMMIS CRE 1

10:2

Mr Peter Blaker is to ask on 5 April for a statement about the latest position in the negotiations for the inclusion of Hong Kong in the UNCTAD generalised prefcrence scheme.

2. The inclusion of Hong Kong as a beneficiary was the subject of a supplementary to the

PQ he asked on 8 March about the progress of discussions in UNCTAD on generalised preferences: a copy of the Secretary of State's reply is attached, He has also written to the Parliamentary Secretary about various trade matters affecting Hong Kong, including the generalised preference scheme, and was told that we were working for the inclusion of Hong Kong in the Japanese and American offers, now that the EEC had agred; to the inclusion of Hong Kong although on less favourable terms than Hong Kong would have liked. He wrote again on 3 March expressing the hope that we could avoid t discrimination against Hong Kong in favour of countries like South Korea, Taiwan and Singapore, who are not excluded from the EEC offer on textiles and footwear, in the event of our entry into the EEC. The draft reply points out that the inclusion of Hong Kong in the EEC's offer on even e-restricted basis was only gained after much hard work and simply pad etest that all offers will be subject to future reviews. In so limiting their draft for the reply, CRE 3 have had in mind that Mr Rippon did not reveal to the House in his statement on the Ministerial meeting of the Conference with the EEC on 2 February (during which he was asked by Mr Blaker about Hong Kong) that he had told the EEC "it must be our continuing concern to avoid discrimim tion against Eong Kong in favour of its principal competitors among the developing countries".

3.As we have received no further information from Japan or America, other than

confirmation that the Japanese are working on the inclusion of Hong Kong on a restricted basis, I suggest a reply on the following lines, and attach notes for supplementaries:

"I cannot add anything to what I told my Hon Friend in the answer to his supplementary question on 8 March."

cc Mr J V Hagestadt CRE 3

Mr M Perceval

FCO

-2-

(JG Morris)

CRE 1

23 March 1971

100

MR LAM (CRE1)

The background to this question is explained in Mr Morris' minute above and in the last of the notes for supplementaries opposite.

2.

Mr Blaker's present question may be intended as a follow up to his previous questions in the hope that something has since been settled. There are however no more developments to report.

3.

Alternatively Mr Blaker may be concerned, as a recent letter to ir Grant has made clear, that because we shall have to adopt the EEC's preferences scheme following entry and because the EEC scheme excludes Hong Kong for textiles and footwear, Hong Kong would have to face discrimination in our market in favour of her Asian

· competitors.

L10016 N449108/633443 100,000 11/69 KP3601