TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 177

CONFIDENTIAL

139

CYPHER/ CAT/A

FM UKMIS GENEVA 041025Z

CONFIDENTIAL [NEUTRAL],

TO ROUTINE FCO TEL NO. 314 OF 4 MAY

INFO UKDEL OECD PARIS

GATT WAIVER FOR GENERALISED SCHEME OF PREFERENCES.

1. THE GATT COUNCIL MEETING TO CONSIDER THE WAIVER HAS NOW

BEEN FIXED FOR 13 A.M. ON 25 MAY. THE DATE OF 10 MAY PROPOSED IN GATT/AIR/856 HAS BEEN ABANDONED AFTER SOME OF THE COUNTRIES WHICH CLAIM DEVELOPING STATUS BUT ARE EXCLUDED

FROM THE EEC'S SCHEME OBJECTED THAT THIS DATE DID NOT ALLOW FOR THE REQUIRED 30 DAYS' NOTICE AFTER THE CIRCULATION OF GATT/AIR/853 (TEXT OF DRAFT WAIVER). A FURTHER COUNCIL MEETING ON 28 MAY WILL BE HELD IF THE CHAIRMAN FINDS IT IMPOSSIBLE

TO PUT THE WAIVER TO THE VOTE ON 25 MAY.

2. FUNDAMENTAL OPPOSITION TO THE WAIVER IS EXPECTED TO BE VOICED IN COUNCIL BY GREECE, CUBA, SPAIN, ISRAEL, MALTA (ALL OF WHOM MADE THEIR POSITION CLEAR DURING LAST WEEK'S INFORMAL MEETING OF CONTRACTING PARTIES) AND TURKEY. DRAFTING

AMENDMENTS CANNOT MEET THESE COUNTRIES' OBJECTION WHICH IS

THAT THE WAIVER SHOULD EMBODY THE SELF-ELECTION PRINCIPLE FOR

BENEFICIARIES WITH NO POSSIBILITY OF EXCEPTIONS.

3. THE WORDING OF THE PRESENT DRAFT MAY BE CRITICISED BY

OTHER DEVELOPING COUNTRIES, E.G. INDIA, WHO MAY NEVERTHELESS BE

EXPECTED TO VOTE IN FAVOUR ALTHOUGH MINOR DRAFTING AMENDMENTS

MAY BE NECESSARY TO ACCOMMODATE THEM.

RECEVED IN REGISTRY No. 51 10 MAY 1971

4X126/1

CONFIDENTIAL

/4. IT IS