TNAG-0385-FCO40-431-Trade-relations-between-Hong-Kong-and-the-EEC-1974 — Page 33

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CONFIDENTIAL

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HONG KONG AND THE GSP

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1. At the risk of duplicating records of other conversations

with Mr David Jordan I should record that he made the following

points to me on the question of Hong Kong and the Community's

GSP:

(a)

Business in Hong Kong was only just beginning to realise

the consequences of the discrimination against the

Colony's textiles and footwear which will begin on

1 January 1974. There were already signs that trade

was being diverted away from Hong Kong and unless a

decision were taken reasonably early in 1974 to remove

the discrimination, then contracts for the first part

of 1975 would also have been placed.

(b) For this reason Hong Kong had a strong interest in

discussions on the removal of the discrimination being

commenced early in 1974. There were those who were

saying to Hong Kong that we should allow the Community

to make proposals about timing and the solution of the

problem, but Sir Christopher Soames had said to him

exactly the opposite i.e. that it was up to the British

Government to make the running.

(c) There would be advantage in Hong Kong being consulted

on the way in which the British Government proposed to

play the hand in Brussels.

11 December 1973

Copy to:

Sir Duncan Watson

CONFIDENTIAL

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