TNAG-0462-FCO40-527-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 8

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Mr Stuart

EEC GSP

Reference...REGELNED IN

REGISTRY

0.37

14 MAY 1974

HKK 6/598/1

(48)

1. You will wish to see the attached DOT account of the meeting held in the DOT during the visit of Mr Tran. (We

have already seen

VR Hard's

version 1

2. The paper does not make very optimistic reading. Paragraph 7 is particularly depressing. Mr Tran does not expect that anything can be done for Hong Kong this year for 1975. This does not, of course, alter our resolve to achieve something and we may well be able to do so in the "renegotiation" atmosphere, as opposed to Mr Tran's official level view.

3.

In respect of paragraph 3, I suspect that a problem will arise of defining "genuine damage" If this is done along the lines of the Multi-fibre Textile Agreement, it might conceivably work.

4.

With reference to paragraph 4, I agree we shall. have to argue strongly against a 10% butoir.

5. You will see from paragraph 10 that Miss Tate mentions the possibility of working on supplementary lines of approach in Hong Kong and, in this respect, suggests lobbying in capitals. Technical arguments in favour of Hong Kong are very much better left to Hong Kong themselves. Not only have they better access to figures and the arguments, but we should get ourselves into a very invidious position if we took this on at working level (as compared with the Ministerial approach which is essential). Hong Kong has arguments which purport to show she is a developing country, but person- ally I find these difficult to maintain in the true sense of the word, and certainly in connection with the poorer developing countries. It is a brutal fact that Hong Kong's success is her own worst enemy in this respect.

10 May 1974

M A Goodfellow

Hong Kong & Indian Ocean Dept.