TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 156

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the Community and we put forward this idea in the OECD early last year. Whereas the French will undoubtedly continue to seek the continuation of reverse preferences after 1974, the Commission and most of the other members would probably prefer to see this dispute between themselves and with the Americans put off as long as possible. If the Samuels proposal is adopted a further problem arises on which we should be grateful for any clarification. The exclusion of Spain, Greece, Turkey etc from the American scheme has been justified on the grounds of reverse preferences they grant to the EEC. If this condition is dropped we should like to know what attitude the Americans will then have to the inclusion of these countries."

2 I agree with paragraph 4 and 5 of your draft and would only suggest the addition in paragraph 4 of the suggestion that we expect the Americans to consider in detail any possible ways in which Hong Kong could be included in their scheme. We accept that they cannot adopt precisely the techniques employed by the EEC within their duty free quotas. It is therefore all the more necessary for Hong Kong officials, with our support, to have an early opportunity of exploring with the Americans what solutions may be found to any problems.

Yours

ever,

Gwen.

0 H Kemmis

Mr Stathan EID

FCO

Ir Laird

FCO

Mr Lush

NAD PCO

CONFIDENTIAL