TNAG-0392-FCO40-438-Discussions-on-textiles-and-commercial-subjects-between-offi-1973 — Page 14

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industry was able to overcome its difficulties easily.

Mr Jordan accepted this point but said that in the case of the

United Kingdom's alignment to the Generalised Scheme of

Preferences of the European Economic Community no-one knew at

the time whether any particular action was going to prove

detrimental or not. Exclusion of Hong Kong's textiles and

footwear from the European Economic Community's Generalised

Scheme of Preferences came at a time of increasing competition

in the textile field and with rising prices. What really worried

Hong Kong manufacturers was the discrimination in favour of

countries unconnected with the Member countries of the European

Economic Community and against Hong Kong, a dependency of the

United Kingdom. He was afraid that there would be diversion of

trade towards countries who were given benefits under the

Generalised Scheme of Preferences.

There was evidence that this

had started to happen and it may continue.

3. Mr Jordan referred to his discussions in the Department of

Trade and Industry on 30 November when he had suggested that the

United Kingdom's negotiating brief on the question of Hong Kong's

exclusion of textiles and footwear should be worked out jointly

between Her Majesty's Government and the Hong Kong Government.

Both were agreed on the desirability of Hong Kong's full inclusion

but there were several possible fall back positions which Hong

Kong would prefer to a complete rejection of their case. Mr Royle

/agreed

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