TNAG-0384-FCO40-430-Trade-relations-between-Hong-Kong-and-the-EEC-1973 — Page 17

NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

zi

The City's S.S.P is not static;

Since Maloppion's

ट

acut with

the Commas musisting,

GOP to textiles and 100twear from Hong Kong will create

difficulties for us in the Community, in the UK and

with the independent Commonwealth countries Commandy's

the European scoring

Has compiled

way to the community to improving its

Scheme.

Morcover

original agreement to admit Hong Kong to the Gommuni

obtained

GSP, less textiles and footwear, was only reached with

of or part news

showing

difficulty.

resistance

ง)

The Community have not since been disposed

Lp.~oposals for improvement; in

to agree to other)modifications to the GSP They

pt the in

Vattend

will argue that the question of Hong Kong's admission

Our partners to the GSP was definitively settled in 1971 Some of hoking

umet be untrant them might take the opportunity to press for changes

to reopen the questem boff on the have even afthed in aspects of the treaty which they do not like.

the report. At,

At

home, critics of our European policy are likely to

argue that if we can reopen the terms of our entry on

Hong Kong's behalf, we can also do so for ourselves.

Other Commonwealth countries, such as India, will

contrast our insistence that we have no alternative

but to raise our tariffs against them, with our efforts

Rek for Hong Kong,

Success of this stage the forely all indeed.

It is, however, possible, as a matter of Community

law, for us to reopen this question. It would not

involve any breach of the Act of Accession. We can

also point out to our Community partners that, at

least in the case of cotton textiles, the situation

has changed since 1971 to the detriment of Hong Kong.

Since our agreement, the Philippines, Thailand and

Yugoslavia, all of them serious competitors of Hong

Kong, have become beneficiaries under the scheme for

should cotton textiles. The Community recognise the

problem for us of discriminating against our own

/dependency.

(17259) Dd.897459 250m 12/72 G.W.B.Ltd. Gp.863

(16941) Dd.897300 250m 9/72 G.W.B.Ltd. Gp.863