TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 12

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pointed to the clause in paragraph 3b of the Community

offer which made clear that whatever special conditions

might be applied to Hong Kong these would not contain

discriminatory elements and to Mr. Rippon's acceptance

of the E.E.C. offer which made clear that it was an

acceptance of the offer as contained in the Community's

statement and which also drew the Community's attention

to the continuing concern of the H.M.G. to avoid discrimin-

ation against Hong Kong in favour of its principal

competitors among the developing countries. I said that

I had been authorised by H.M. G. officials in London and

instructed by the Hong Kong Government to draw the

Commission's attention to these statements and that any

discriminatory move by the E.E.C. against Hong Kong would

cause the Hong Kong Government to seek the assistance

of H.M.G. since the agreement which would be breached was

one made between the E.E.C. and the U.K.

7. In response to this

Schoffer said that he had

been unaware of the non-discrimination clause in the

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Community offer and he tought that this fact combined with

Hong Kong's fears of discrimination and the lack of

justification for the exclusions would require the Commission

to re-examine its proposed action completely. He would have

discussed thewitsouss the matter within the Commission as quickly

as possible but he did not see how there could be any

movement on the E.E.C.'s original proposals without their

being given alot being given alot more study. He expressed doubt that the meeting E.E.C. could resolve problems before the mid-December of

the Counsel which would consider the following year's

G.P.S. proposals in which case the only alternative

in his view

available to the Commission would be to continue with

the present arrangements for Hong Kong unchanged for next

year.

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