TNAG-0463-FCO40-528-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 100

GA 940

CYPHER CAT A

SM UKREP BRUSSELS 256257

RESTRICTED

FRANC FILES

MJE 6/12

1974

TO ROUTINE F C O TELMO, 2909 OF 20 JUNE ANFO GOV HONG KONG INFO SAVING UKRIS GENEVA BRUSSELS (FOR DODGE - HK OFFICE).

GENERALISED PREVERENCES.

1. MISS TAIT (CRE) AND DE FONBLANQUE (UKREP) CALLED ON TRAY ON

THE COMMISSION THIS MORNING AT HIS REQUEST TO DISCUSS THE PROPOSAL

ADOPTED BY THE COMMISSIONERS YESTERDAY FOR GSP FOR 1975. HIS

AIM WAS TO EXPOUND TO US HOW IN HIS VIEW THE COMMISSION'S PROPOSAL

WENT TOWARDS MEETING THE UK'S OBJECTIVES FOR THE RENEGOTIATION

OF THE GSP. TRAN SAID THAT THE TRANSFER OF 44 OF THE 51 PRODUCTS

ON THE SENSITIVE LIST TO THE SEMI-SENSITIVE LIST AND THE

CONSEQUENT ABOLITION OF SUB-QUOTAS FOR MEMBER STATES FOR THESE

PRODUCTS REPRESENTED A SUBSTANTIAL IMPROVEMENT. THESE PRODUCTS

WOULD ALSO BENEFIT FROM THE FLEXIBILITY IN THE AMOUNTS IMPORTED

DUTY-FREE IN THE SEMI-SENSITIVE LIST. (THIS MEANS THAT IN

PRACTICE CEILINGS ARE OFTEN EXCEEDEO BY A LARGE FACTOR.) TRAN

POINTED OUT THAT THE COMMISSION'S PROPOSALS DID NOT DISTINGUISH BETWEEN THE SEMI-SENSITIVE AND THE NON-SENSITIVE LISTS. PRODUCTS

ON THE NON-SENSITIVE LIST WHILE THEORETICALLY SUBJECT TO A CFILING

IN FACT ENTER THE COMMUNITY DUTY-FREE WITHOUT LIMIT. OUR AIM OF

ABOLISHING RESTRICTIONS SUBJECT TO A SAFEGUARD COULD THEREFORE

BETTER BE MET BY PRESSING FOR THE TRANSFER OF ITEMS ON THE SEM! -

SENSITIVE LIST TO THE NON-SENSITIVE LIST AS WELL AS SUPPORTING THE

COMMISSION'S PROPOSALS FOR TRANSFERS FROM THE SENSITIVE TO THE

SEMI-SENSITIVE LIST.

2. TRAN ADVISED US STRONGLY AGAINST OPENING UP THE QUESTION OF

THE CONDITIONS FOR RE-IMPOSING DUTIES ON THE SEMI-SENSITIVE LIST

£ G BY ELABORATING ON WHAT WE MEAN BY SAFEGUARDS. AS HE SAW IT THE DANGER WAS FIRST THAT ANY SUGGESTION THAT IT MIGHT BECOME

HORE DIFFICULT TO GET DUTIES RE-IMPOSED ON PRODUCTS ON THE

SENSITIVE LIST WOULD RESULT IN FRENCH AND ITALIAN REFUSAL TO

TRANSFER PRODUCTS FROM THE SENSITIVE LIST; AND SECOND THAT IT

WOULD PROVIDE AN OPPORTUNITY FOR THE SAME DELEGATIONS TO PROPOSE

THAT RE-IMPOSITION SHOULD BE COMPLETELY AUTOMATIC WHEN CEILINGS

WERE REACHED ON SENSITIVE OR SEMI-SENSITIVE PRODUCTS AND THAT

THERE SHOULD BE CLOSE MONITORING or IMPORTS. THE ELEMENT OF

FLEXIBILITY IN THE ADMINISTRATION OF THE CEILINGS WHICH DICTED

AT PRESENT MOULD THEN BE LOST, WE TOOK NOTE,

PRICTED

1

/ 5. WS

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