TNAG-0462-FCO40-527-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 16

GPS 230

PORITY

CHER/CAT A

FM FCO 021055Z

CONFIDENTIAL

FRAME FILES

RECEIVED IN

REGISTRY No. 51

J

- 3 MAY 1974

HKK 6/598/1

CONFIDENTIAL

45

PA

HKK 6/598/1

TO PRIORITY GOVERNOR HONG KONG TELNO 418 OF 2 MAY, 1974 INFO UKREP BRUSSELS, BRUSSELS (FOR DODGE) UKTS GENEVA (FOR PEARSON).

LAST

YOUR TELNO 478: EEC GSP.

REF.

44

NEXT

(62

}

1. WE ARE FULLY CONSCIOUS OF THE NEED TO ENSURE THAT FULL ACCOUNT

IS TAKEN OF HONG KONG'S INTERESTS DURING THIS YEAR'S REVIEW OF

THE COMMUNITY'S GSP. NOT ONLY SHALL WE BE PRESSING FOR THE

INCLUSION OF HONG KONG'S TEXTILES AND FOOTWEAR EXPORTS IN THE .

SCHEME FROM 1975 ONWARDS BUT ALSO WE SHALL DO ALL WE CAN TO ENSURE

THAT ANY GENERAL MODIFICATIONS IN THE SCHEME, E.G. IN THE BUTOIR SYSTEM, DO NOT LEAD TO ANY WORSENING OF THE POSITION FOR HONG KONG, 2. I DO NOT, HOWEVER, CONSIDER THAT IT WOULD BE APPROPRIATE OR, INDEED, PRACTICABLE TO MAKE A STATEMENT ON HONG KONG, IN THE COUNCIL

OF MINISTERS MEETING ON 7 MAY, MY NEXT STATEMENT ON RENEGOTIATION

IS NOT BEING MADE UNTIL 4 JUNE, IN THAT STATEMENT I SHALL BE

REFERRING TO OUR DESIRE TO SEE SUBSTANTIAL IMPROVEMENTS IN THE

COMMUNITY'S GSP BOTH IN ITS STRUCTURE AND COVERAGE. NEARER THE

TIME WE SHALL BE CONSIDERING THE DETAILS OF THE STATEMENT AND

WHAT SHOULD BE SAID ABOUT HONG KONG.

3. I REGRET THAT IN THE CIRCUMSTANCES THIS MEANS DELAYING THINGS

YET A FURTHER MONTH BUT I HOPE THAT YOU WILL APPRECIATE THAT IT

IS. BEST TO KEEP THE QUESTION OF HONG KONG IN STEP WITH PROGRESS

ON OUR ATTITUDE TO THE GSP GENERALLY. IN FACT WE BELIEVE THAT THE

BEST HOPE FOR HONG KONG LIES IN KEEPING THE QUESTION OF HER PARTICULAR PROBLEMS IN THE GENERAL CONTEXT OF OUR PROPOSALS FOR

IMPROVEMENTS. IN THE GSP.

CALLAGHAN

EUROPEAN ECONOMIC FILES DISTRIBUTION

ADDITIONAL DISTRIBUTION

EID

HKIOD

MR CARTER

MR WILFORD MR YOUDE

COPIES TO:

CONFIDENTIAL

FRAME

HONG KONG GOVERNMENT OFFICE

GRAFTON ST.

!