TNAG-0462-FCO40-527-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 61

GRS 1070

PRIORITY

CYPHER CAT A.

FM UKREP BRUSSELS 28193GZ

RESTRICTED

FRAME FILES

LAST

RED

DESKBY 298968Z

NEXT

44

REF

RESTRICTED

36

Enter

RECEIVED IN REGISTRY No. 51

2 - APR 1974

HKK6/598/1

74

TO PRIORITY FCO TEL NO 1577 OF 28 MARCH/INFO SAVING BRUSSELS (FOR DODGE) HONG KONG NEW DELHI ISLAMABAD DACCA COLOMBO AND BELGRADE,

GENERALISED PREFERENCES

Į

:

WE MET THE COMMISSION REPRESENTATIVES ON 27 MARCH, PRECEDING THE

MEETING OF MEMBER STATES UNDER COMMISSION CHAIRMANSHIP ON 28

MARCH, THE MAIN SUBJECT OF DISCUSSION WAS THE COMMISSION'S

PROPOSALS FOR REFORMING THE GENERALISED PREFERENCES SYSTEM TO

DEAL WITH THE PRODLEM OF THE MOST COMPETITIVE OF THE DEVELOPING

COUNTRIES. CONSIDERABLE DIFFERENCES OF VIEW EMERGED ABOUT THE

DETAIL OF THE PROPOSALS THOUGH THERE WAS A MEASURE OF AGREEMENT,

FROM WHICH WE DISSENTED ON THE PRINCIPLE. THERE WAS ALSO

DISCUSSION OF PROCESSED AGRICULTURAL PRODUCTS. THE COMMISSION

WILL SUBMIT A FORMAL PROPOSAL FOR A MID-YEAR IMPROVEMENT IN THE

SCHEME TO THE COUNCIL WITHIN THREE WEEKS. THIS WILL BE AIMED

PARTICULARLY AT THE COUNTRIES OF THE INDIAN SUB-CONTINENT, AND WILL

COME OUT JUST BEFORE THE FIRST MEETING OF THE INDIA/EEC JOINT COMMITTEE. FOLLOWING THE MEETING WE AND THE COMMISSION, HAD A BRIEF DISCUSSION WITH THE INDIANS ABOUT THE CONTENTS OF SUCH A PROPOSAL. THROUGHOUT WE PARTICIPATED ON THE BASIS OF A GENERAL

RESERVATION.

INDUSTRIAL PRODUCTS

2. THE COMMISSION INTRODUCED THEIR PAPER BRIEFLY. THE MAIN OBSTACLE TO REDUCING THE SENSITIVE LIST IN THE PAST HAD BEEN THE FEARS OF SOME MEMBER STATES ABOUT IMPORTS FROM A SMALL NUMBER OF HIGHLY COMPETITIVE DEVELOPING COUNTRIES. THIS HAD RESULTED IN MAKING THE SCHEME WORSE FOR ALL BENEFICIARIES. THE MAIN PROBLEM WAS YUGOSLAVIA, PARTICULARLY ITS EXPORTS TO NEIGHBOURING COUNTRIES (IE ITALY) BUT HONG KONG WAS ALSO A DIFFICULTY. OTHER BENEFICIARIES HAD COMPLAINED ABOUT THE DISPROPORTIONATE SHARE OF THE BENEFITS CF THE COMMUNITY'S SCHEME TAKEN BY THESE COUNTRIES. IF A SOLUTION COULD BE FOUND TO THE PROBLEM OF THE HIGHLY COMPETITIVE, THIS WOULD MAKE POSSIBLE A MAJOR IMPROVEMENT IN THE SCHEME FOR THE BENEFIT OF THOSE COUNTRIES FOR WHOM IT WAS PRIMARILY INTENDED. THE SOLUTION MUST BE ABLE TO BE PRESENTED AS NON-DISCRIMINATORY.

RESTRICTED

13.

WE SAID