TNAG-0462-FCO40-527-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 122

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RECE! REGIST

IN

HKK 6/

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61598/1

Mr Youde PS/Mr Royte

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LAST

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31E/2.

14 JAN1974

EXT

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HONG KONG AND THE EEC'S GENERALISED SCHEME OF PREFERENCES

1.

When Mr Jordan was in London at the beginning of December,

he suggested to Mr Royle that the United Kingdom should agree that

the revision of the Community's GSP should be discussed early in

1974 rather than at the end of the year. He pointed out that the

Hong Kong textile industry were taking orders nine months in advance,

and that if a revision in the GSP was to be effective in 1975, it

would have to become known early in 1974.

2.

Mr Jordan said that the Hong Kong industry and public, after

a slow start, were becoming increasingly concerned about the UK's

failure to achieve, or even to demand, the elimination of discrimina-

tion on 1 January 1974. He had been pressed to take up the question

during his visit to the UK. He handed over copies of three memoranda

from the industry in Hong Kong illustrating the extent of their

concern. One of these documents was repeated in Hong Kong Saving

telegram no. 441 (also attached). Mr Jordan thought that if he could

be authorised to announce on his return that HMG would be pressing

the case early in 1974, this would take some of the heat out of the

situation.

3.

In the event, although it could have been possible to give

Mr Jordan the assurance he sought before his return to Hong Kong, his

government's decision on the Mass Transit system intervened, which

made new attempts to conciliate opinion in Hong Kong at that moment

/inappropriate.

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