TNAG-0385-FCO40-431-Trade-relations-between-Hong-Kong-and-the-EEC-1974 — Page 59

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(2) The separation of footwear from textiles

These two itens are linked in the Community's regulations for GOP, the common factor being that for these items only independent countries are uecorded beneficiary status. Although there is clearly an "apparel" connection between textiles and footwear, in many respects they are dissimilar products and one could argue that there is no obvio a reason why they should be linked in the GP Regulation. But the idea of separating then has not been mooved before and we cannot say how such a sugestion would be received. However, 16 would be over-sanguine to imagine that some such simple device would have the of ect of eleninating the discrinin tion against Hong Kong, on footwear, Indeed this is one area where we can be sure that our om industry will welcone the relief attended by the exclusion of Hong Kong fron the enlarged schone, end any proposal so undo this at the end of 1974 will certainly meet with opposition from that quarter (as it would from the Community industry as a whole).

(3) the "competitive need" concept

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we assume this refers to the idea, alrendy floated by tho Commission and sup orted by certain meuber states, that significant improvements in the 40's GP can only be achieved if so e way can be found or limiting the ac es of the more competitive among the developing world. (There is a passing reference to this problem in the ligh Level Group neport and its only with some difficulty tht we were able to block the muning" of Hong Kong and Yugoslavia) we can undoubtedly expect thi, m pressure to mount when negotiations open on the schemes for 1975. Indeed, to a degree a precedent has already been establishes for "selective" treatment in the limited beneficiary status which will be acorded to Romania. (It is also of interest that at a recent CDI seminar, when something of the same ideu was flot d there was no sericus disposition - despite the presence of such businessmen as Mr Krishuamarti and Mr Peter Tulloch to quarrel with the view that some discrimin: ting tre: tment was prob bly inevitable.) Were such differentiution to be introduc.a zhvo the C schene, Leng Kong would clearly be among those Recorded special treatment. But this would at least eli-in:te long Xong's complaint ch t the --C chene now gives more A. vuured treatment to beneficiaries in the same "league" as long nong.