TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 155

CONFIDENTIAL

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WHILE WE DO NOT WANT TO SOLICIT COMMENTS, WE SHOULD BE GRATEFUL FOR TELEGRAPHIC REPORTS OF ANY SIGNIFICANT REACTIONS, PARTICULARLY ANY OBJECTIONS TO OUR DECISION TO GO AHEAD WHILE THE POSITION ON THE US SCHEME REMAINS SO UNCERTAIN. IT MAY BE CLAIMED THAT THIS MAKES MEANINGLESS OUR REPEATEDLY EXPRESSED CONCERN THAT COMMONWEALTH DEVELOPING COUNTRIES HAVING TO SHARE THEIR PREFERENCE IN THE UK SHOULD GAIN COMPENSATORY ACCESS TO OTHER MARKETS. SHOULD YOU MEET WITH COMPLAINTS ON THESE LINES YOU MAY DRAW AS APPROPRIATE ON THE FOLLOWING POINTS: (1) THE GPS WAS WORKED OUT IN UNCTAD, APPROVED BY ITS MEMBERS AS QUOTE MUTUALLY ACCEPTABLE TO DEVELOPED AND DEVELOPING COUNTRIES UNQUOTE: AND ADOPTED BY THE UN GENERAL ASSEMBLY IN OCTOBER 1970 AS AN INTEGRAL PART OF THE INTERNATIONAL DEVELOPMENT STRATEGY. (11) THE UK'S DECISION TO IMPLEMENT THE SCHEME IS IN ACCORDANCE WITH THE PREFERENCE-GIVING COUNTRIES' UNDERTAKING RECORDED IN PARA 32 OF THE INTERNATIONAL DEVELOPMENT STRATEGY ADOPTED BY THE UN GENERAL ASSEMBLY ON 24 OCTOBER 1970 QUOTE TO SEEK AS RAPIDLY AS POSSIBLE THE NECESSARY LEGISLATIVE OR OTHER SANCTION WITH THE AIM OF IMPLEMENTING THE PREFERENTIAL ARRANGEMENTS AS EARLY AS POSSIBLE IN 1971 UNQUOTE,

THE EEC INTRODUCED THEIR SCHEME ON 1 JULY: JAPAN INTENDS TO DO SO ON 1 AUGUST, AND SWITZERLAND, SWEDEN, NORWAY, DENMARK, FINLAND AND AUSTRIA ALL AIM TO IMPLEMENT THEIR SCHEMES ON OR BEFORE 1 JANUARY 1972. THE UK, HAVING LED THE WAY IN SUPPORTING THE IDEA OF A GPS FROM ITS INCEPTION AT UNCTAD 1, CANNOT NOW DRAG HER FEET.

(IV) THE US LEGISLATION IS LIKELY TO BE SUBMITTED SOON TO CONGRESS. NO ONE CAN SAY AT THIS STAGE, IN WHAT SHAPE IT WILL EMERGE OR WHEN, BUT THE ANNOUNCEMENT OF OUR DECISION TO IMPLEMENT WILL, WE EXPECT, BE A STRONG ADDITIONAL INCENTIVE TO THE US ADMINISTRATION AND CONGRESS TO PRESS AHEAD.

(V) WE REMAIN OF COURSE READY AND WILLING TO TAKE ACCOUNT OF THE EFFECT OF THE GPS ON COMMONWEALTH TRADE AT THE PERIODIC REVIEWS OF THE SCHEME WHICH, WILL BE CONDUCTED IN UNCTAD.

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