TNAG-0384-FCO40-430-Trade-relations-between-Hong-Kong-and-the-EEC-1973 — Page 94

(17259) Dd.897459 250m 12/72 G.W.B.Ltd. Gp.863 (16941) Dd.897300 250m 9/72 G.W.B.Ltd. Gp.863

NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

in the records of the enlargement conference.

The Community's GSP is implemented by means of

annual Council Regulations. Those concerning

textiles and footwear omit Hong Kong from the list

of beneficiaries. Accordingly, it would, as a pure

matter of Community law be possible to modify the

relevant regulations by including Hong Kong among

the list of beneficiary countries, since this would

not involve any breach of the Act of Accession

itself.

8. The Legal Advisers consider that the terms of

the Community agreement on Hong Kong in principle

regulate definitively the question whether and on

what conditions Hong Kong should be included among

the beneficiaries of the Community GSP scheme.

Therefore to depart from the terms of an "agreement"

formerly recorded in the records of the enlargement

conference, it would need to be proved without any

question of doubt that the Community GSP scheme for

textiles (or footwear) has been modified since 1971

for other beneficiaries as regards the size of quotas

and the number of beneficiaries. In other words

that discrimination against Hong Kong in favour of

its principal competitors among the developing

countries, had been intensified to such an extent as

to justify re-opening the issue. If this case could

be made (and Hong Kong believes that it can) then

there should be a tenable case for re-opening the

position.

(D) Options

9.

The question remains however, was Mr Rippon's

statement to the Community intended to be immutable?

It was obviously not the intention of Mr Rippon

-

4

CONFIDENTIAL

/himself