TNAG-0462-FCO40-527-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 52

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27. We might suggest that the case set out in the memorandum is fully covered by the representations HMG has been and will continuo to make on Hong Kong's behalf. But wo hesitate to actively discourage them from

subsitting their peper, particularly if they feel obliged for domestic reasona to: be seen to be raiding a demarche. It might be as well to suggest however that they softened its flavour, in particular the misleading implication of paras 3 and 4 of the third page that Hong Kong is not a major beneficiary. While she may take only a small proportion of the total potential value or GSP preferences, che doos take & high proportion of the ectual trade. Community ears might be more receptive ir llong Kong could demonstrate that their exports did not represent a threat to Community industry. Hong Kong might also develop the reasons why despite their export performance they still genuinely need developing country preferential treatment. If they could document further the statement - which we accept as tro that Hong Kong's exports have not blocked the access of minor suppliers that might help.

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28. We have no strong views on timing, To the extent that the Commission is now firmingrup ita thinking, the cooner they go in the batter. However, no should probably not be happy to see Inft included in para 1 the refaranga to MD'G's unqualified support until we have cleared our lines with Mirá sters.

Our strategy

29. It would seem unlikely that Hong Kong will view the Commission's proposals with much enthusiasa in view of what they have already said. In deciding our next stops with GSP, we would then have to take account of the extent to which safeguarding Hong Kong's interest is an obstacle in the way of achieving our other objectives in GSP, in particular better access for the least developed. We cannot say exactly what the trade-offa ere; but it seems reasonable to assure there is some interplay between them.

30. we cannot go further until we have guidance from Hinisters on the weight they attach to pressing Hong Kong's interests. When we have discussed the Commission's proposals with Mir Jordan wo shall be equipped to make a cubmi saion to them. When wo have a steer on Hong Kong, we shall be able to set it against the whole range of our objectives in GSP and the constraints we know to exist on achieving them.

L

CHEL

April. 1974

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