TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 141

.

CONFIDENTIAL

3.

Ambassador Kennedy is not, so far as we know,

directly concerned with the GPS question, but given the

close inter-connexion between Hong Kong's position as a

textile exporter and her and her hopes of benefiting

from the American GPS on other products (textiles and

footwear are excluded from the US scheme for all

beneficiaries, and in the EEC scheme for all dependent

territory beneficiaries), he will not be surprised if

Mr Royle reminds him of our earnest hope that the US

will be prepared to extend beneficiary treatment to

Hong Kong.

RECOMMENDATION

4. I recommend that, if a suitable opening presents

itself, Mr Royle should ask Ambassador Kennedy for his

assessment of the prospects of US GPS legislation this

year (without which the whole future of the GPS would be

in doubt), and emphasise to him the importance we attach

both to implementation of the scheme by the United States

and to Hong Kong's inclusion by the United States. The

EEC have found a way to include Hong Kong (subject to

certain special restrictions) and we very much hope that

the Japanese will now follow suit. We should therefore

welcome an early opportunity of exploring with the US

what solutions in the form of safeguards could be devised

for any problems they may have over Hong Kong.

CONFIDENTIAL

15.