TNAG-0382-FCO40-428-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 13

ment both the question of Japan's dis- crimination against Hong Kong, as well as HK's status in the EEC's GPS.

Mention of the latter does of course highlight the big ‘but' that many local people would wish to raise in chal- lenge of the picture so far presented. It may be all very well having Mr. Jordan in Tokyo --the argument goes

and it may be very nice having Mr. Herman in Washington and busy back- benchers scurrying around on our be- half; but what happens when there is a conflict between Britain's and Hong Kong's interests?

Conflict

To deny that there is never conflict between British and Hong Kong in- terests is of course ridiculous. The Chamber itself has sometimes been vocal in criticising British policies. The textiles issue is an obvious example.

Specifically on the EEC Generalised Preference Scheme, it is however worth quoting the remarks recently made by Sir Patrick Reilly, leader of the London Chamber of Commerce group that was in Hong Kong last October. Addressing a Rotary meet- ing, Sir Patrick said:

'In negotiations with the EEC, nearly all the most difficult points re- lated not to British interests at all, but to those of other members of the Com- monwealth, tropical sugar, New Zea- land butter, the special interests of Hong Kong and other similar issues.'

It has been suggested that HK would never have been considered for inclusion as

a beneficiary, had the

'eurocrats' and their Governments been left to themselves. However, the implementation of the GPS coincided with negotiations for Britain's joining the EEC. This gave the British Government opportunity to see that HK was included as a beneficiary, al- beit on restricted terms.

In passing, it is worth noting that Taiwan is not a beneficiary under the EEC scheme. How far this reflects Taiwan's lack of negotiating weight, consequent on political developments during the past few years must remain a matter for speculation. It is how- ever tempting to wonder what might have happened had Taiwan's erstwhile big brother, the USA, chosen to make behind-the-scenes noises. In the cir- cumstances, it seems not altogether unfair to give Sir Geoffrey Rippon and his men some of the credit for HK's inclusion.

The present debate concerns how- ever a new turn in events -- the align- ment of the UK's Preference Scheme with that of the EEC. It seems clear at this stage that HK can hope for little during 1974. But in view of Sir John Davies's recent remarks in Par- liament, it also appears that the UK government is prepared to take up cudgels on HK's behalf for 1975 and thereafter. It is disappointing to HK

and to the Chamber in particular that Sir John did not take action in respect of 1974. The need now is to make sure that HK takes advantage of the channels open to it in order to ensure that Sir John's promise is kept. It may once again be worth quoting Sir Patrick Reilly on this theme. In

25