TNAG-0462-FCO40-527-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 65

GRPS

1748

PRIORITY

CYPHER/CAT A

2909222

FM HONG KONG 290922Z

CONFIDENTIAL NEUTRAL/

ITAL

3J-A

RECEIVED IN REGISTRY No.52

-1 APR 1974

HKK 6/508/1

TO PRIORITY F C O TELMO 386 OF 29TH MARCH, 1974. INFO PRIORITY UKREP DRUSSELS, BRUSSELS (FOR DODGE) AND HONGAID.

M.I.P.T.

MEMORANDUM.

LACT

RE

REXT

RES

37

HER MAJESTY'S GOVERNMENT IN THE UNITED KINGDOM HAS ALREADY

STATED IN THE COUNCIL OF MINISTERS OF THE EUROPEAN ECONOMIC COMMUNITY

ITS DETERMINATION TO PRESS RESOLUTELY FOR THE INCLUSION OF HONG KONGS

TEXTILES AND FOOTWEAR IN THE COMMUNITY'S GENERALISED SCHEME OF

PREFERENCES FROM 1975.

THE HONG KONG GOVERNMENT HOPES THAT IT WILL NOT BE THOUGHT

INAPPROPRIATE THAT IT SHOULD DRAW ATTENTION TO CERTAIN FACTS AND FIGURES, THE IMPLICATIONS OF WHICH MAY BE REVELANT TO CONSIDERATION OF HONG KONG'S STATUS, BOTH PRESENT AND FUTURE, IN RELATION TO THE

COMMUNITY'S SCHEME.

WHEN HONG KONG WAS INCLUDED IN THE SCHEME THAT WAS INTRODUCED

ON 1 JULY 1971, TEXTILES AND FOOTWEAR FROM HONG KONG WERE

SPECIFICALLY EXCLUDED FROM THE BENEFITS OF THE SCHEME.

SINCE THAT TIME THE HONG KONG FOOTWEAR INDUSTRY HAS DECLINED

SHARPLY AND EXPORTS OF HONG KONG TEXTILES TO THE EEC HAVE

FALLEN MARKEDLY.

A SURVEY OF THE HONG KONG FOOTWEAR INDUSTRY HAS RECENTLY BEEN

MADE. THIS SHOWS THAT THE INDUSTRY IS FRAGMENTED AND UNDER-

CAPITALISED AND THAT BOTH PRODUCTION AND EXPORTS HAVE DROPPED SHARPLY IN RECENT YEARS,

THE HONG KONG GOVERNMENT BELIEVES THAT THE CONDITION OF

THIS INDUSTRY DOES NOT WARRANT DISCRIMINATION, BUT RATHER THAT THE

HONG KONG FOOTWEAR INDUSTRY HAS ALL THE CHARACTERISTICS OF THE KIND

OF INDUSTRY WHICH THE GENERALISED SCHEMES OF PREFERENCE ARE GENERALLY

DESIGNED TO ASSIST,

AWHILE IT IS

CONFIDENTIAL

£