TNAG-0463-FCO40-528-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 102

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No 25 JUN 19

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TO PRIORITY ACTING GOVERNOR HONG KONG TELNO 583 OF 20 JUNE 1974. INFO ROUTINE UKREP BRUSSELS BRUSSELS (FOR DODGE) BRUSSELS TELEGRAM NO 37 TO HONG KONG : EEC/GSP 1975

24/JT

1. WE AGREE WITH DODGE THAT THE INCLUSION OF FOOTWEAR IN THE COMMISSION'S GSP PROPOSALS FOR 1975 IS A USEFUL STEP FORWARD. BUT WE SHOULD NOT UNDERESTIMATE THE DIFFICULTIES THAT REMAIN IN THIS SECTOR QUITE APART FROM TEXTILES. IT IS BY NO MEANS A FOREGONE CONCLUSION THAT MEMBER STATES WILL ENDORSE THE NEW POLICY FOR 1975, THE FRENCH IN PARTICULAR HAVE ALREADY INDICATED THAT THEY WILL BE UNHAPPY ABOUT THE INCLUSION OF FOOTWEAR AND CAN BE EXPECTED TO RESIST STRONGLY THE COMMISSION'S PROPOSAL, WE SHALL DO ALL WE CAN TO GET THE PROPOSAL ACCEPTED AND I AM SURE THAT YOU TOO WILL WORK HARD TO THIS END, AND WE ARE FAIRLY HOPEFUL THAT AT THE END OF THE DAY WE SHALL BE SUCCESSFUL, IN ANY PUBLICITY C THIS IN HONG KONG WE THINK THAT INCLUSION OF FOOTWEAR IN THE COMMISSION'S PROPOSALS COULD BE WELCOMED BUT A WORD OF CAUTION SHOULD BE ADDED LEST THE FOOTWEAR PRODUCERS AND EXPORTERS GAIN THE IMPRESSION THAT ALL IS ROW OVER BAR THE SHOUTING, AND IT SHOULD ALSO BE BORNE IN MIND THAT EVEN IF THE COMMISSION PROPOSAL IS ACCEPTED FOOTWEAR WOULD BE AMONG THE PRODUCTS TO WHICH RESTRIC- IONS WILL APPLY.

2. TEXTILES VILL OF COURSE BE EVEN MORE DIFFICULT. WE SHALL CONTINUE TO PRESS HARD FOR THEIR INCLUSION IN THE 1975 SCHEME, BUT AS WE HAVE SAID BEFORE IT MAY BE THAT PROGRESS HERE WILL HAVE TO BE MADE GRADUALLY,

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