TNAG-0370-FCO40-416-Visit-of-Edward-Heath--UK-Prime-Minister--to-Hong-Kong--12-1-1973 — Page 33

CONFIDENTIAL

6.

We hope to embark on the 1974 annual review before the middle of next year,

so that the 1975 arrangements can be announced in good time. Meanwhile, the

Hong Kong Government intends to lobby in the capitals of the Six. we strongly

encourage them to do this.

7. It has to be borne in mind that, for textiles, preferences or the lack

of them are of much less importance than quantitative restrictions. (And as

regards preferences on textiles, the competitors about whom Hong Kong is most

concerned (eg S Korea and Yugoslavia) obtain limited benefit from the GSP

(because of the butoirs) and are also held down to a much lower level than

Hong Kong by quantitative restrictions). What will matter most for Hong

Kong's textile exports from 1974 onwards will be the extent of our success

in obtaining more generous quota treatment for her and other developing

countries from the more restrictive EEC members. Our textile policy in

the Community is aimed precisely at achieving this.

Department of Trade and Industry

14 December 1973

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CONFIDENTIAL