TNAG-0462-FCO40-527-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 42

121

CONFIDENTIAL

IN THE LIGHT OF THESE CONSIDERATIONS, THE HONG KONG COVERNMENT

DELEIVES THAT ANY MODIFICATION TO THE COMMUNITY'S SCHEME TO

REDUCE THE OPPORTUNITIES FOR THE MORE COMPETITIVE BENEFICIARIES

WOULD, AS FAR AS HONG KONG IS CONCERNED:

(A) REDUCE HONG KONG'S ALREADY SMALL SHARE OF THE BENEFITS (4.3 PER CENT, OR 1.1 PER CENT IN THE CASE OF SENSITIVE PRODUCTS)'

STILL FURTHER, AND :

(B) DISCRIMINATE AGAINST HONG KONG BECAUSE IT CANNOT EXPECT COMPENSATORY DIVERSIONS OF TRADE WHEN ITS COMPETITORS REACH THE BUTO IR:

AND,

(C)

INHIBIT THE DEVELOPMENT OF HONG KONG'S TRADE WITH THE COMMUNITY STILL FURTHER.

HOWEVER THE FACTS THAT HONG KONGS FOOTWEAR INDUSTRY IS IN.

DECLINE, THAT HONG KONG'S TEXTILE EXPORTS TO THE COMMUNITY. ARE FALLING, AND THAT, ALTHOUGH HONG KONG HAS FOR TWO YEARS RUNNING REACHED THE BUTOIR IN SOME 21 CATEGORIES, THIS HAS HOT DENIED

ACCESS TO OTHER BENEFICIARIES, LEAD THE HONG KONG GOVERNMENT TO

SUGGEST THAT THERE ARE NO OBJECTIVE GROUNDS FOR INTRODUCING

HORE RESTRICTIVE ARRANGEMENTS THAT WOULD CATEGORISE HONG KONG

AS A 'SUPER-COMPETITIVE BENEFICIARY OR TO MAINTAIN THE PRESENT

DISCRIMINATORY EXCLUSION OF HONG KONG FOOTWEAR AND TEXTILES,

THE HONG KONG COVERNMENT HOPES THAT THE COVERNMENT OF FRANCE/ GERMANY THE NETHERLANDS/ BELGIUM AND LUXEMBOURG/ITALY/DENMARK/

THE REPUBLIC OF IRELAND WILL FEEL ABLE TO SUPPORT THE UNITED

KINGDOM GOVERNMENT'S PROPOSAL THAT THE COMMUNITY'S SCHEME

SHOULD FROM 1 JANUARY 1975 NO LONGER DISCRIMINATE AGAINST HONG

KONG.

F C O PASS ROUTINE HONG KONG GOVERNMENT OFFICE, LONDON,

MACLEHOSE.

INTERNATIONAL TRADE DISTRIBUTION

COPIES TO:

HK100 TRED

EID

5 - CONFIDENTIAL

HONG KONG GOVERNMENT OFFICE

6 GRAFTON STREET W 1