TNAG-0385-FCO40-431-Trade-relations-between-Hong-Kong-and-the-EEC-1974 — Page 124

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TO IMMEDIATE GOVERNOR HONG KONG TELNO 1144 OF 9 NOVEMBER/INFO PRIORITY UKREP EEC BTC HONG KONG BRUSSELS (FOR DODGE) SAVING TO UKMIS GENEVA.

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MIPT: GENERALISED SCHEME OF PREFERENCES HONG KONG.

MR PETER HORDERN (HORSHAM):' TO ASK THE SECRETARY OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS, IN VIEW OF THE UNITED KINGDOM'S OBLIGATION TO ALIGN WITH THE EEC'S GENERALISED SYSTEM OF PREFERENCES ON 1ST JANUARY 1974, WHAT ACTION HE IS TAKING TO REMEDY THE EXCLUSION .FROM THE GENERALISED SYSTEM OF PREFERENCES OF HONG KONG'S TEXTILE

AND FOOTWEAR EXPORTS.

REPLY GIVEN (BY MR ROYLE).

AT A MEETING OF THE COUNCIL OF MINISTERS OF THE EEC ON 6 NOVEMBER, MY RT HON FRIEND, THE CHANCELLOR OF THE DUCHY OF LANCASTER, MADE

A STRONG STATEMENT ON THE POSITION OF HONG KONG. HE SAID THAT DURING

THE ENLARGEMENT NEGOTIATIONS IN 1971 THE COMMUNITY HAD AGREED TO

ADMIT HONG KONG TO ITS GENERALISED SYSTEM OF PREFERENCES, SUBJECT

TO THE EXCLUSION OF HER TEXTILES AND FOOTWEAR EXPORTS. OUR CHIEF NEGOTIATOR AT THE TIME, HAD AGREED TO THIS ARRANGEMENT AND HE HAD

MADE IT CLEAR TO THE COMMUNITY THAT IT WOULD BE THE UNITED KINGDOM'S

CONTINUING CONCERN TO AVOID DISCRIMINATION AGAINST HONG KONG. THE

ARRANGEMENTS AGREED BY OUR PARTNERS IN 1971 MAY HAVE SEEMED TO THEM

NOT UNGENEROUS. BUT AN IMPORTANT CONSIDERATION NOW WAS THAT SINCE

1971 THE SITUATION HAD CHANGED TO THE DETRIMENT OF HONG KONG, AND

THAT THE PHILIPPINES, THAILAND AND YUGOSLAVIA, ALL OF THEM SERIOUS

COMPETITORS OF HONG KONG, HAD BECOME BENEFICIARIES UNDER THE

COMMUNITY'S SCHEME IN RESPECT OF COTTON TEXTILES. WE HAD EXAMINED

THIS MATTER CAREFULLY AND HAD CONCLUDED THAT IN PRESENT CIRCUMSTANCES

IT WAS NO LONGER ACCEPTABLE FOR DISCRIMINATION TO APPLY AGAINST

HONG KONG. AS THIS ASPECT OF THE SCHEME WILL REMAIN UNCHANGED FOR 1974, MY RT HON FRIEND HAS PUT HIS COLLEAGUES ON NOTICE THAT IN THE CONTEXT OF NEXT YEAR'S REVIEW WE INTEND TO PRESS/RESOLUTELY

FOR THE INCLUSION OF HONG KONG'S TEXTILES AND FOOTWEAR IN THE SCHEME

FROM 1975 ONWARDS,

DOUGLAS-HOME

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EUROPEAN ECONOMIC DISTRIBUTION

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ADDITIONAL DISTRIBUTION

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HONG KONG GOVERNMENT OFFICE 6 GRAFTON STREET W 1