TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 11

(a)

LAP

(b)

хал

· 3

the exclusion of the 12 items from the G.P.S.

for all beneficiaries,

Or

the placing of the 11 non sensitive items on the

with

sensitive list ist Butoirs pitched at a level

which would effectively inhibit duty free imports,

(c)

5.

a further tightening of the origin rules for these

items.

Schoffer said that these three methods had been

considered but discarded for political, economic and

administrative reasons. He expressed himself as

sympathetic with the Hong Kong position in view of the

fact that for several items there was no trade, and

enquired whether the Hong Kong Government would consider

a gentlemen's agreement limited to those items in which

there was trade. I reiterated that any proposal which

envisaged discrimination against Hong Kong could not

be considered by the Hong Kong Government. Schoffer

said that he would report immediately to his seniors on

the discussion and make clear Hong Kong's objections to

the proposals which objections were based on two arguments,

(a) that there was no justification for the exclusions,

Hong Kong's fears of the effects arising from

discrimination against Hong Kong.

(b)

6.

*

I said that there was a third and in my view

overriding reason which would make it impossible for the

Hong Kong Government to accept any gentlemen's agreement

and that was that the Hong Kong Government would consider

any discriminatory action by the E.E.C. in respect of

Hong Kong to be in breach of the EEC/UK agreement on Hong

Kong reached during the enlargement negotiations.

I

/pointed