TNAG-0376-FCO40-422-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1973 — Page 35

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A

terms of

かと

domestic politics

as well as in

terms, eg, our deelongs with India and

Jommunity fistaers

with our

Yet another issue where our interests diverge is in

relation to the Community's Generalised Scheme of

Preferences.

A

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 be specifically

excluded. Thus on 1 January 1974 we will in effect

have to discriminate against Hong Kong exports in these

sectors in favour, for example, of South Korea. The

arguments against trying to reopen at Brussels something

which our Community partners regard as having been was

definitively settled in the negotiations are formidable.

But you will appreciate the political difficulties here

and in Hong Kong of being seen to discriminate against

Hong Kong in this way. The problem is being urgently

examined by my officials.

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