TNAG-0385-FCO40-431-Trade-relations-between-Hong-Kong-and-the-EEC-1974 — Page 5

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Tuesday, December 11, 1973

you may rely on your Government to fight against it with the utmost vigour.

This continuing, unrelenting and highly expert effort by our trade officials,

is well known to many of you, and I believe is having some practical

success, as well as bringing our trading partners to a better understanding

of the matters which cause us concern. I am pleased, for example, that

the Japanese authorities have recently reduced the Hong Kong exceptions

list to their generalised preferences scheme from 96 items to 12. Although

the 12 items represent a substantial proportion of our export trade to

Japan, the Japanese Government's move was a welcome step in the right

direction, and they have undertaken to review this list again in the near

future.

Unfortunately, problems are arising over other preference schemes,

particularly that of the now enlarged European Economic Community. Whilst

our direct competitors are given full access to the EEC Preference Scheme,

Hong Kong's textiles and footwear will be excluded in 1974. Since our

textiles are already heavily restricted to that market by quotas, and since

our footwear industry is relatively small and not particularly competitive

by world standards, we can see absolutely no justification for this discriminatory

treatment by the Community. We shall continue to press most vigorously

for its removal, and we note with satisfaction that H.M.G. have given notice

to the Community of their intention to seek the cancellation of these

exclusions in 1975.

Your Government is also participating fully in the negotiations in

Geneva of a new multilateral arrangement for textiles of all fibres. Hong

Kong's knowledge and expertise in this complex field ensures that the views

of our representatives are listened to with respect.

/As regards