TNAG-0462-FCO40-527-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 56

We cause

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المال من

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CALL ON MR BUTLER BY MR JORDAN, HONG KONG DIRECTOR OF COMMERCE: THURSDAY, 4 APRIL AT 1600 HOURS

and

1. Mr Jordan is visiting London between

April. The main reason for his visit is to discuss

the Community's Generalised Scheme of Freferences (GSF)

and in particular the possibility of circulating a

memorandum (copy of draft attached) within the Community

on this subject. Mr Jordan will be having detailed

discussions with officials from the Department of Trade

and the Department of Industry.

BACKGROUND

2.

In February 1971 we agreed with the Six, during

the enlargement negotiations, that Hong Kong should be

admitted to the Community's GSP, subject to the

exclusion of her textile and footwear exports. As some

of Hong Kong's principal competitors among the develop-

ing countries receive benefits in these categories, we

have, since 1 January 1974, on aligning to the

Community's GSP, been discriminating against Hong Kong.

Hong Kong is concerned about this, both for its own

sake and for the precedent it sets for other importing

countries (i.e. the United States and Japan) in their

Generalised Preference Schemes.

A.

3. When our chief negotiator, Mr Rippon, accepted

this arrangement in 1971 he told the Community that it

would be our continuing concern to. avoid discriminating

against Hong Kong in favour of her principal competi-

The Hong Kong

tors among the developing countries.

authorities reminded us of this undertaking last year

re-

and put pressure upon us to open the matter with the

Community. Ministers concluded however that it would

be better to wait until the 1974 GSP review before

(17865) Dd.145178 400m 5/73 G.W.B.Led. Gp.863

/doing