TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 4

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PRICRITY

CYPHER CAT A

CONFIDENTIAL

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121858Z

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CONFIDENTIAL.

MIKEL

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TO PRIORITY GOVERNOR HONG KONG TELNO 854 OF 12 NOVEMBER

INFO BRUSSELS (FOR DODGE) UKMIS GENEVA (FOR PEARSON)

CODEL BRUSSELS.

FOLLOWING FROM MILLS.

E E C GENERALISED PREFERENCE SCHEME: PROPOSED EXCLUSION OF 12 ITEMS,

1. DODGE AND I SAW SCHOFFER OF THE COMMISSION ON THURSDAY

AFTERNOON (11TH NOVEMBER): TRAN HAD LEFT FOR PARIS.

2. SCHOFFER SAID THAT THE COMMISSION HAD UNDER CONSIDERATION

PROPOSALS TO EXCLUDE HONG KONG FROM PREFERENCE IN RESPECT

OF 12 ITEMS. THERE WERE THREE WAYS IN WHICH THIS COULD BE DONE: (A) EXCLUSION BY COMMUNITY REGULATION OF DEPENDENT TERRITORIES, (B) EXCLUSION BY COMMUNITY REGULATION OF HONG KONG ALONE,. (C) A VOLUNTARY UNDERTAKING BY HONG KONG NOT TO CLAIM PREFERENCE

IN RESPECT OF THESE ITEMS.

HE HOPED HONG KONG COULD ACCEPT LAST ALTERNATIVE SINCE TO DO

SO WOULD BE TO GIVE EFFECT TO AN ASSURANCE WHICH HAD BEEN EXCHANGED

BETWEEN E E C AND H M G OFFICIALS DURING ENTRY NEGOTIATIONS.

I RESPONDED THAT HONG KONG COULD NOT AGREE VOLUNTARILY TO FOREGO

PREFERENCE ON ITEMS IN QUESTION AND EXPRESSED SURPRISE THAT ANY

ASSURANCE HAD BEEN GIVEN AS SCHOFFER HAD ALLEGED. I SAID THAT

I HAD HAD DISCUSSIONS WITH H M G OFFICIALS ON TUESDAY (9TH NOVEMBER) AND IT HAD BEEN CLEAR FROM THAT DISCUSSION THAT THE

# M G OFFICIALS WITH WHOM I SPOKE HAD NO KNOWLEDGE OF ANY SUCH

ASSURANCE AND THAT IT WAS INCONCEIVABLE THAT SUCH AN ASSURANCE

WOULD HAVE BEEN GIVEN WITHOUT THE KNOWLEDGE OF THE HONG KONG

GOVERNMENT. SCHOFFER ADMITTED THAT HE HIMSELF HAD ONLY BECOME AWARE

OF THE ASSURANCE WITHIN THE PAST TWO OR THREE WEEKS BUT HE

KNEW THAT DI MARTINO AND TRAN HAD BEEN AWARE OF THE ASSURANCE

WHICH WAS GIVEN DURING ENLARGEMENT NEGOTIATIONS. I SET

CONFIDENTIAL

/DISCUSSION