TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 14

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CONFIDENTIAL

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256

Mr Forrester

HONG KONG'S OVERSEAS MARKETS

1.

пі

1.A. 12/4.

Lof bur.

Mr Royle will wish to know that we had a useful meeting at the DTI yesterday morning. During the discussion it became clear that what the Commission were after was "technical consultations" to which there had been a reference in the report of a working party prepared at the time Hong Kong's position in the markets of theSix was under consideration. It also became clear that there had been no "secret" undertaking between either the Six and HMG or the Six and HMG on behalf of Hong Kong.

2. Mr Cater readily agreed that Hong Kong officials should enter into discussions with the Commission as soon as possible. His report of the outcome of the discussion is contained in FCO telegram No 837 (copy attached). The most important point is that whatever may be agreed upon in respect of a few sensitive items the Community agreed last January not to discriminate against Hong Kong in favour of Hong Kong's competitors among the developing countries.

3. Mr Cater was not optimistic that he would be able to persuade the Americans to agree to a shorter term of the Agreement recently initialled. He hoped however that the Americans would agree to a review clause which would enable Hong Kong to seek changes in the arrangements should such changes be of advantage to the Colony as a result of "developing market opportunities".

10 November 1971

cc

Sir L Monson

Mr Wilford

Mr Mason (EID(1))

Enaria.

EÒ Laird

Hong Kong Department

CONFIDENTIAL