TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 84

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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.

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 UNQUCTE

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

MANCEUVRE WITH THE TERMS OF THE AGREEMENT REACHED ON HONG KONG

IN THE NEGOTIATING CONFERENCE (SEE ESPECIALLY OUR TELEGRAM NO.

CODEL 16 PARA. 3 (C)).

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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.

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HKD

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COPIES TO:

HK GOVT OFFICE LONDON