TNAG-0441-FCO40-506-Visits-of-leading-personalities-of-Hong-Kong-to-UK-1974 — Page 60

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EUROPEAN ECONOMIC COMMUNITY/GENERALISED SCHEME OF PREFERENCES, AND OUTLOOK FOR TEXTILES

Heliii

Background

1.

In February 1971 we agreed with the Six, during the enlargement

negotiations, that Hong Kong should be admitted to the Community's

Generalised Scheme of Preferences (GSP), subject to the exclusion of

her textile and footwear exports. As some of Hong Kong's principal

competitors among the developing countries receive benefits in these

categories, we have, since 1 January 1974, on aligning to the

Community's GSP, been obliged to discriminate against Hong Kong.

Hong Kong is concerned about this, both for its own sake and for the

precedent it sets for other importing countries (ie the USA and Japan)

in their generalised preference schemes. In accepting this arrange-

ment in 1971 our chief negotiator, Mr Rippon, told the Community that

it would be our continuing concern to avoid discriminating against

Hong Kong in favour of her principal competitors among the developing

countries. Mr Rippon also informed the Governor of Hong Kong that we

intended to pursue the aim of eliminating discrimination against the

dependency in our technical contacts on the adaptation of our scheme

to that of the Community and in the annual reviews.

2.

The Hong Kong authorities reminded us of these undertakings early

in 1973 and asked us to press for the inclusion of their textiles and

footwear in the EEC's GSP. After careful examination Ministers agreed

in

1973 we should that if we were to try to renegotiate the matter te

be defeated and that instead we should align on the terms negotiated

and wait until the 1974 Annual Review before trying to reopen the

Can I

this? say How had unanimity sude have worked?

issue.

13.

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