TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 184

135

CONFIDENTIAL

Mr Britten (Trade Policy Department)

US GENERALISED PREFERENCES

1.

Your minute of 5 May.

1331

HKK 6/1

136

2. At the outset, may I place on record the obvious point that whatever we have in mind to do we shall have to consult Hong Kong before taking action.

3. It is not clear to me how much Hong Kong know of the situation reported by Mr Meynell in his letter to you of 1 May. I assume that Mr Hermann will have sent a similar report to Hong Kong but I think we shall have to make certain that Hong Kong are fully up to date.

4. I have delayed a reply to your minute hoping that we would soon have an account from Hong Kong of Ambassador Kennedy's visit. This has now arrived. I think Hong Kong have done well. There has always of course been the basis of a deal between Hong Kong and the Americans (in return for inclusion in the American preferences scheme Hong Kong would help the US over their textile problem) and on the information available to us I would judge that Hong Kong will take the view that they are most likely to get the best deal by working through Ambassador Kennedy. I suggest however that our next step should be to consult Hong Kong to see what they think in the light of the information reported by Mr Meynell and their own talks with Ambassador Kennedy.

7 May 1971

CC Mr Statham (EID)

Mr Lush (N Amer D)

E O Laird

Hong Kong Department

CONFIDENTIAL