TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 10

N.P. 3-

3-4

2

he knew that DiMartino and Tran had been aware of the

assurance which was given during the enlargement

negotiations.

I set discussion of this matter aside

statistics

temporarily and we examined the EEG import and Hong

Kong export statistics for these items and

relating to shipments covered by preference certificates.

Schoffer expressed surprise that Hong Kong had no trade

with the EEC in several of t items under discussion

and that Hong Kong did not export some of the items to

any country. He had not been aware of this. In reply

to my question as to the justification for the exclusions,

Schoffer said that he was not competent to give such a

justification and the Commission official who would be

in a position to do this had unavoidably been prevented

from attending the meeting. He assumed, however, that

the items were products about which the domestic industries

of the Member States were worried and that where there

was no trade this reflected a concern that Hong Kong

might develop into these areas. I pointed out that

I understood this to be one of the purposes of the G.P.S.

I then spoke at some length of Hong Kong's objections to

discriminatory treatment in favour of our competitors and

said that for the two reasons (a) that there was no

justification for the exclusions and (b) that Hong Kong

could not voluntarily agree to be discriminated against,

daynuna y do abbyf a gentlemen's agreement between

Hong Kong and the E.E.C. was impossible.

4.

I then suggested three methods whereby the E.E.C.

might secure the protection it sought and which I would be

prepared to recommend for acceptance to the Hong Kong

Government.

These were:

(a)