TNAG-0462-FCO40-527-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 27

FILE NOTE

Reference....

MEETING IN DEPARTMENT OF TRADE ON 4 APRIL

1.

RECENED IN REGISTRY Mo. 51

24 APR 1974

CRE 2 are preparing a note of the meeting but it may be useful to record that Mr Preston agreed that Mr Jordan might say to the Press on his return to Hong Kong that the Hong Kong Government had every reason to expect that the new British Government will stick to its commitment as made by the Chancellor of the Duchy on 6 November.

2.

Mr Jordan said that the worst possible outcome of the review of GSP from Hong Kong's point of view would be the exclusion for Hong Kong from textiles, together with a cutback on present preferences. A total exclusion of textiles from GSP (for all states) would be acceptable. He reiterated Hong Kong's view that inclusion does no good but exclusion does real harm. It does not bring

new trade from new sources but can divert trade amongst current suppliers.

3. On cotton yarn, DoT pointed out that each proposed annual increase in quotas has to go to DoI Ministers, one of whom is MP for Oldham, a marginal constituency with strong cotton yarn interests.

4. Mr Jordan said that Hong Kong imports HKS 75 million worth of textiles from France, but exports only

HK$ 25 million worth, i.e. Hong Kong imports three times as much.

5. On the question of a Hong Kong Memorandum on GSP Mr Jordan suggested it might be taken by thAmbassador to the host Government. Alternatively, it could be taken or sent by someone at a lower level in the Embassy or by a Hong Kong Government representative.

Mr JRTN and I both said we would like to reflect on this proposal especially the suggestion that HM Ambassadors might present the note personally. We would in any case wish to delay any Memorandum until we are sure it fits in with UK proposals on GSP.

22 April 1974

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M A Goodfellow

Hong Kong & Indian Ocean Dept