TNAG-0462-FCO40-527-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 63

RESTRICTED

AGRICULTURAL PRODUCTS

5. IN BILATERAL TALKS WITH THE COMMISSION WE WENT THROUGH THE LATEST UK LIST. THE COMMISSION OPPOSED MOST OF THE PRODUCTS. IN PARTICULAR THEY SAID THAT THE TROPICAL OILS, PEPPER AND CORNED BEEF COULD NOT BE INCLUDED, IN THE CASE OF THE FIRST TWO BECAUSE OF THE CURRENT STATE OF THE PROTOCOL 22 NEGOTIATIONS AND CORNED BEEF BECAUSE IT WOULD BENEFIT ONLY SOME RELATIVELY RICH COUNTRIES IN LATIN AMERICA. THEY WOULD HOWEVER LOOK FURTHER AT THE POSSIBILITY OF TAKING OVER INTO THEIR LIST: VEGETABLES, SPICES, BEANS AND LENTILS OF KINDS PRODUCED IN THE INDIAN SUB-CONTINENT WHICH DID NOT COMPETE WITH ANY COMMUNITY OR ASSOCIATE PRODUCTION AND ALSO CASTOR OIL. THE INDIANS HAVE AGREED TO PROVIDE FURTHER DATA ABOUT THE PRODUCTS IN QUESTION IN ORDER TO SATISFY CUSTOMS AUTHORITIES ABOUT PROBLEMS OF IDENTIFICATION.

6. BRIEF DISCUSSION IN THE MEETING WITH MEMBER STATES WAS ON

PREDICTABLY NEGATIVE LINES. THE FRENCH SAID THEY HAD ''NO

ENTHUSIASM FOR A MID-YEAR IMPROVEMENT BUT THERE WERE INDICATIONS

THAT THEY WOULD ACCEPT A SHORT LIST PROVIDED NO ASSOCIATE OR

COMMUNITY INTERESTS WERE AT RISK.

f

7. THE WORKING GROUP IS TO MEET ON 7 MAY TO CONSIDER THE

COMMISSION'S SUPPLEMENTARY AGRICULTURE PROPOSALS. THE COMMISSION

GROUP WILL MEET ON 17 MAY TO FURTHER DISCUSS THE OUTLINES OF THE

1975 SCHEME ON THE BASIS OF FURTHER MATERIAL TO BE PRODUCED BY

THE COMMISSION.

8. THE SITUATION IS EXACTLY THE ONE WHICH I HAVE PREVIOUSLY

DESCRIBED. IN THE EYES OF THE ORIGINAL COMMUNITY GSP CONCESSIONS ARE A GIFT, TO BE CONFERRED ONLY IF THEY GIVE NO PAID TO ANY COMMUNITY INDUSTRY, AND TO BE LIMITED TO PRODUCTS WHICH DO NOT INTEREST THE COMMUNITY'S VARIOUS ASSOCIATES. IN THIS LIGHT THE CURRENT MOVEMENT IS NOT TOWARDS OPENING UP THE COMMUNITY MARKET BUT TOWARDS. ''IMPROVING' THE SCHEME BY PENALISING SOME OF THOSE WHO DO (RELATIVELY SPEAKING) WELL OUT OF IT, AND TO EXTENDING ITS COVERAGE ONLY WITHIN STRICT LIMITS. LAST YEAR, OPERATING WITHIN BUT KICKING AGAINST THE ESTABLISHED GROUND RULES THERE WERE

3 RESTRICTED

/LIMITS TO WHAT