TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 77

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TO IMMEDIATE FCO TELNO UKDEL 370 CF 25 OCTOBER INFO PRIORITY HONG KONG. INFO ROUTINE UKMIS GENEVA (FOR PEARSON) INFO SAVING BRUSSELS (FOR DODGE)

HONGKONG TELEGRAM NO. 836 - E E C GENERALISED PREFERENCE SCHEME.

KÒNG:

THE GOVERNMENT OF HONG KONG HAVE IN FACT BEEN ADVISED THROUGH DODGE NOT QUOTE INFORMALLY UNQUOTE, AS SUGGESTED IN THE TELEGRAM UNDER REFERENCE, BUT QUOTE FORMALLY THOUGH IN CONFIDENCE UNQUOTE

THAT. THE MEMBER STATES ARE PRESSING THE COMMISSION THAT THERE SHOULD BE EXCLUSIONS AND THAT THE COMMISSION IS PROPOSING THE EXCLUSIONS LISTED IN PARAGRAPH 1 IN THE TELEGRAM UNDER REFERENCE. THE COMMISSION HAVE, HOWEVER, MADE IT CLEAR TO DODGE THAT THEY WOULD MUCH PREFER A GENTLEMAN'S AGREEMENT. THEY HAVE NOT, HOWEVER, OFFERED ANY DETAILED JUSTIFICATION.

2. IT IS OUR ADVICE THAT THE CORRECT COURSE OF ACTION WOULD BE FOR HONG KONG TO REACT BILATERALLY THROUGH DODGE IN THE SAME ' FORMAL BUT CONFIDENTIAL MANNER. WE RECOMMEND THAT DODGE SHOULD BE INSTRUCTED TO EXPRESS CONCERN AND TO ASK WHAT JUSTIFICATION OR EXPLANATION THE COMMISSION CAN OFFER WITH SPECIFIC RELATION

TO THE ITEMS IN QUESTION.

3. DODGE SHOULD ALSO PERHAPS BE INSTRUCTED TO ASK THE COMMISSION HOW THEY RECONCILE THE QUOTE DEPENDENT TERRITORIES UNQUOTE MANOEUVRE WITH THE TERMS OF THE AGREEMENT REACHED ON HONG KONG IN THE NEGOTIATING CONFERENCE (SEE ESPECIALLY OUR TELEGRAM NO. CODEL 16 PARA, 3 (C)).

4. AS SEEN FROM HERE, THERE WOULD BE VIRTUE IN MORE BILATERAL EXPLORATION BETWEEN THE GOVERNMENT OF HONG KONG AND THE COMMISSION BEFORE A DECISION IS TAKEN AS TO WHETHER OR NOT H M G SHOULD INTERVENE.

BRUSSELS SAVING PASSED.

PALLISER

ADDITIONAL DISTRIBUTION

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COPIES TO:

EUROPEAN ECONOMIC & FOLITICAL DISTRIBUTION

HK GOVT OFFICE LCNSON

EID(1) TPP.

Eldonlymy.tiation

HKD

CONFIDENTIAL