TNAG-0298-FCO40-334-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 93

NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

W

Im version

Inders active lobbying by Hims against S. Korea & Taiwan

Pine 3

kee

dis criant da ́

a

You expressed the hope that we will soon

be able to lobby the Six on non-discrimination.

"The Rippons

As you will remember from the Chancellor's

message to the Governor (in CODEL 1 to Hong

Kong of 2 February) we believe that the most

for pursing the issue

effective forum will be the discussions that

must be held with the Community on the adapta-

tion of GPS's prior to enlargement. I feel

that a successful outcome of these talks, which

we have good reason to anticipate, is more

important to us than timing and that we should

not be too-anxious to start these talks soon.

In the natural course of things there will be

soon.

no great eagerness within the EEC to take #--

preferential

restricted imports of, for example, textiles or

shoes from Hong Kong's competitors than from

Hong Kong herself. It may turn out that the

ut that th

precedent provided by the EEC arrangements for

the latter will be seized upon as a valid grou

for a similar deal to be given the former with

out too much pushing by us,

There is one other consideration which is

worth thinking about. If, to take the extreme

case, the EEC were to exclude Taiwan and South

Korea entirely it would be open to the Americans

to exclude Hong Kong on burden sharing grounds.

In other words disadvantageous EEC arrangements

for Hong Kong's competitors will not necessarily

benefit her if this leads the US to worsen

their eventual offer. Tactically it may be as

well to get some form of commitment from the

[Q

Americans before we embark on an exercise aimed

at avoiding EEC discrimination against Hong

Kong.