TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 191

R G Britten Esq Trade Policy Department

FCO

Dear Ray,

CONFIDENTIAL

US GENERALISED PREFERENCES

1.

BRITISH EMBASSY

COMMERCIAL DEPARTMENT

3100 Massachusetts Avenue, N.W.

WASHINGTON D.C. 20008

Telephone: (202) 462-1340

1 May 1971

133

i) cepes to

14. Heath CommodWres Dep) Hi Lourd Hongling Replic M- Callagher / Bottomless mysell

2) My Burns (with a spare)

1715

Your letter of 28 April arrived at a timely moment when (as foreshadowed in my letter of 22 April to Owen Kemmis) I had just done a round up with Ed Cronk (State Department) and Ernest Stern (White House) on the Administration's intentions regarding legislation to implement their UNCTAD generalised preferences offer. Alec Hermann has also been following this matter up in the past few days.

2. First, by way of background, I think it is important to stress that there are many people here who do not believe there will be any generalised preferences legislation this year or indeed perhaps during the life of the present Congress. The White House staff seem fairly consistently to be taking the view that until the vexed questions of textiles and footwear have been resolved no liberalising legislation stands much chance in Congress.

3.

Nevertheless, the State Department have now firmed up on the introduction of legislation; and Ed Cronk at least speaks optimistically about its prospects. I conclude that State have persuaded the other agencies that it is necessary to introduce legislation soon, in fulfilment of the Administration's commitments internationally, and to do their reasonable best to secure its passage. But it may be that State is whistling to keep its courage up. It is also worth stressing that if Congress does act (say in the autumn) on generalised preferences legislation, there are grave risks that the Senate will attach quota provisions to the bill: the main hope of avoiding this would undoubtedly 'be if some solution had been found to the textiles problem.

4. Notwithstanding this background the Administration's intentions have been reasonably consistently confirmed by Cronk and Stern and by Alec Hermann's contacts. A submission

cc. UKDEL Brussels

UKDEL OECD

UKMIS Geneva

Chancery, Kingston

Chancery, Port of Spain Chancery, Castries Chancery, Bridgetown

Chancery, Georgetown OH Kemmis Esq, DTI Miss M J Lackey, DTI W Nicoll Esq, DTI J F Slater Esq, Tsy. N. Amer. Dept. EID

Caribbean Dept.

CONFIDENTIAL

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