TNAG-0385-FCO40-431-Trade-relations-between-Hong-Kong-and-the-EEC-1974 — Page 12

London SW1

Foreign and Commonwealth Office

Copy Sent

Tw. Aston BTC.

HỒNG KÔNG

Telephone 01-

D H Jordan Esq

Director of Commerce & Industry HONG KONG

Your reference

Mi

196

لسلام المنيا

ha

Our reference

Date

21 December 1973

1.

You may recall that during your visit to London earlier this month you discussed separately with Mr Royle and myself your suggestion that the United Kingdom might propose soon to the Community that the 1974 Review of its Generalised Scheme of Preferences might be started early in the year with a view to reaching decisions for 1975 somewhat before the end of the year. I have now seen the Governor's telegram No 1478 from which see that you have discussed your suggestion with him.

2. As I said when we met in London, I see much merit in trying to get the Community's GSP for 1974 settled, if at all possible, several months before the end of the year. Quite apart from the obvious advantages to exporters and importers of knowing fairly well in advance about measures which will affect trading conditions in 1975 there would also be advantage to the Comr unity if the GSP did not have to be settled in the last month of the year at a time when almost certainly a number of decisions on. other important issues will have to be taken.

3. But we must consider carefully how best the idea should be presented within the Community in order that it will stand a fair chance of being agreed. As I said in London the best tactic appears to be to try to encourage the Commission itself to propose this to the Member States. Some time during January we shall therefore be asking our Permanent Representative in Brussels to speak to the Commission about this. If subsequently it transpires that the Commission is unwilling to make such a proposal we could then this might be in February or March ourselves propose this to the other Member States. But I must stress that the chances of this idea being agreed will be much the greater if the Commission itself can be persuaded to propose it and I can assure you that we shall do what we can to get them to do this. If they do, we can then welcome the decision publicly and privately let people know that we stimulated the Commission's action,

4. I should perhaps add a word of caution. Even if it is agreed that the GSP Review should start fairly early next year we mist not be under any illusion that there will be much chance that the decisions will be taken early. Discussions will almost inevitably still drag on until the end of the year.

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