1171 G.13.0.d
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41640) D2397300 350m
*17257) D4.377459
already such cases in the pipeline I would be prepared (as the less damaging course) to initiate legislation
in this country to abolish the death sentence in the
Colony - a policy which would nevertheless be strongly
resented by a majority of public opinion in Hong Kong.
8. Yet another issue where our interests diverge is
in relation to the Community's Generalised Scheme of
Preferences. Under the Treaty of Accession we are
obliged to align ourselves with the Community scheme
on 1 January 1974. In the enlargement negotiations we with difficulty persuaded the Community to agree that
its scheme should apply to Hong Kong, but they insisted,
and we accepted, that textiles and footwear should bo
specifically excluded. Thus on 1 January 1974 we will
in effect have to discriminate against Hong Kong export
the Degro M in these sectors in favour, for example, of South Korea.
The arguments against trying to reopen at Brussels
something which was settled in the negotiations are
formidable. But you will appreciate the political
difficulties here and in Hong Kong of being seen lo
discriminate against Hong Kong in this way. The probl
is being urgently examined by my officiulo.
9. Air services agreements in which Britain galon
handsomely by controlling landing rights at Hong Kong (while paying nothing for the building or inhegaram
of the facilities at Kai Tak) are another hopes oi
contention. In the context of the 1980 negol Anbie
negotiablom
decided for political reasons that it was in the thuis.
Kingdom interest to permit KLM a service to long; Rows.
Now SAS want a similar service, and the low Ropes
/Govern
CONFIDENTIAL
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