REF
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HONGAID LONDON
PRODROME LONDON
00 HONGAID CRS
1000
EN CLAIR
FM DC AND HONG KONG C506LOZ
UNCLASS IF IED
5 JL. 14
TO IMMEDIATE HONG KONG GOVERNMENT OFFICE LONDON (FOR KIDO} TELEX NO L55 OF 5 JUNE INFO PRIORITY GENEVA (FOR PEARSON BRUSSELS (FOR DODGE) WASHINGTON FOR HERMANN),
THE FOLLOWING ARE STATEMENTS MADE IN HONGKONG IN RESPONSE TO MP. CALLAGHAN'S REMARKS ABOUT HONGKONG IN HIS SPEECH IN BRUSSELS TO THE EEC COUNCIL OF MINISTER OY MAY FOR ANY ACTION YOU DEEM APPROPRIATE,
STATEMENT BY DIRECTOR OF COMMERCE AND INDUSTRY,
MR. J.D. MCGREGOR.
ASSURANCE BY MR. CALLAGHAN. THE U.K.WILL SEEK TO REMOVE DISCRIMINATION AGAINST MONG KONG.
THE COMMERCE AND INDUSTRY DEPARTMENT IS VERY PLEASED WITH THE SOLID SUPPORT FOR HONG KONG INDICATED BY THE FOREIGN SECRETARY, MR. CALLAGHAN, IN LUXEMBOURG YESTERDAY. THE STRONGLY WORDED ASSURANCE WHICH HE GAVE THAT THE HONG KONG CASE FOR REMOVAL OF DISCRIMINATION AGAINST HONG KONG IN THE EEC GENERALIZED PREFERENCES SCHEME WOULD BE SUPPORTED BY BRITAIN WAS MOST WELCOME AT THIS TIME.
**THE HONG KONG GOVERNMENT HAS TAKEN EVERY POSSIBLE STEP DURING THE LAST TWO YEARS TO SEEK REMOVAL OF THE DISCRIMINATION AGAINST OUR TEXTILES AND FOOTWEAR IN THE FEC SCHEME, MR. MCGREGOR SATO, THIS ACTION HAS BEEN TAKEN AT ALL LEVELS OF AUTHORITY FROM GOVERNOR DOWN. WE HAD AN ASSURANCE OF THE BRITISH GOVERNMENT'S SUPPORT FOR OUR CASE LAST NOVEMBER WHEN MR.DAVIES, THEN CHANCELLOR OF THE DUCHY OF LANCASTER TOLD THE ECC COUNCIL OF MINISTERS THAT THE UK WOULD PRESS MOST RESOLUTELY, FOR THE REMOVAL OF DISCRIMINATION AGAINST HONG KONG FROM 1975 ONWARDS. BUT THIS FURTHER STATEMENT BY MR. CALLAGHAN MUST BE VIEWED AS A FIRM DECLARATION OF INTENT BY THE BRITISH GOVERNMENT AND AS SUCH IT SHOULD SE WELCOMED BY ALL HONG KONG TRADE AND INDUSTRY,
THIS IS GOING TO BE A VERY DIFFICULT TASK FOR THE BRITISH GOVERNMENT HE SAID, AND WE MUST NOT UNDERESTIMATE THE PROBLEM. NEVERTHELESS, MR. CALLAGHAN'S STATEMENT PROVIDES A BASIS FOR OPTIMISM'..
MR.MCGRECOR SAID THAT A CONSTANT DIALOGUE HAS SEEN MAINTAINED WITH THE BRITISH GOVERNMENT TO DEVELOP IS CASE FOR REMOVAL OF DISCRIMINATION.
IN APRIL, MR. DAVID JORDAN, THEN DIRECTOR OF COMMERCE AND INDUSTRY, HAD FURTHER TALKS IN LONDON ON THE MATTER. HE SAID ON HIS RETURN TO HONG KONG :
IT WAS USEFUL THAT WE HAD ARRANGED TO HAVE THESE DISCUSSIONS IN LONDON AT THIS TIME. WE HAD THE OPPORTUNITY TO PUT FORWARD AND EXPLAIN OUR BELIEF THAT THE EXCLUSION OF HONG KONG'S TEXTILES AND FOOTWEAR IS NO LONGER IF IT EVER WAS -- JUSTIFIABLE OR NECESSARY
HEN JUDGED BY ANY OBJECTIVE CRITERIA.T
OUR FOOTWEAR EXPORTS ARE DECLINING AND IN TEXTILES WE HAVE NOT FILLED OUR QUOTAS IN THE LAST FEW YEARS. IN OTHER PRODUCTS, ALTHOUGH IMPORTS FROM HK HAVE BEEN A LARGE PROPORTION OF TOTAL IMPORTS UNDER THE PREFERENCE SCHEME, THEY HAVE PEEN VERY SMALL IN RELATION TO THE TOTAL QUOTAS AVAILABLE.**
MEM
STATEMENT BY MR.DEREK JONES, SECRETARY 8
ECONOMIC SERVICES.
QUESTIONED THIS MORNING ABOUT MR. CALLAGHAN'S STATEMENT, THE SECRETARY FOR ECONOMIC SERVICES, MR. DEREK JONES, ALSO WARMLY WELCOMED THE INTENTION OF THE BRITISH GOVERNMENT TO SEEK A BETTER DEAL FOR HONG KONG IN THE FEC'S GENERALISED PREFERENCES ARRANGEMENT.
* HOPE IT WILL BE UNDERSTOOD IN THE OTHER MEMBER STATES OF THE COMMUNITY' HE SAID, THAT WHAT WE ARE SEEKING, WITH THE SUPPORT OF THE BRITISH GOVERNMENT, IS NOT SPECIAL ARRANGEMENTS WHICH WILL DISCRIMINATE IN HK'S FAVOUR, BUT RATHER THE REMOVAL OF CIS; CRIMINATION IN FAVOUR OF OUR CLOSE COMPETITORS WHICH IS ALREADY PROVING DAMAGING TO HONG KONG'S TRADE IN TEXTILES AND FOOTWEAR TO THE COMMUNITY.
OUR POSITION, MR. JONES CONTINUED, ** IS THAT HK SHOULD BE ABLE TO 191DE ON FAIR AND EQUAL TERMS WITH ITS CLOSE COMPETITORS IN THE MARKETS OF THE WORLD. WE DO NOT ASK FOR SPECIAL FAVOURS. AND WE ACCEPT THAT SPECIAL TREATMENT IS ACCORDED TO COUNTRIES AND TERRITORIES ASSOCIATED WITH THE COMMUNITY AND THAT THE NEEDS OF THE LEAST DEVELOPED AMONG THE DEVELOPING COUNTRIES REQUIRE PARTICULAR CONSIDERATIONS. BUT WE DO NOT ACCEPT AS REASONABLE A POSITION IN WHICH BRITAIN IS RECUIRED BY COMMUNITY ARRANGEMENTS TO ACCORD BETTER TREATMENT TO COUNTRIES WHO HAVE NO TIES WITH THE COMMUNITY, AND WHO ARE CLOSE COMPETITORS OF HONG KONG, THAN SHE ES PERMITTED TO EXTEND TO HONG KONG WHICH IS, AFTERALL, HER OWN DEPENDENT TERRITORY.
MR. A. ISMAIL, EXECUTIVE DIRECTOR OF THE FEDERATION OF HK INDUSTRIES WAS DELIGHTED WITH THE NEWS.
THE FEDERATION HAS BEEN
SERIOUSLY CONCERNED AT THE DISCRIMINATION AGAINST HONG KONG IN THE EEC CSP HE SAID, WE HAVE PRESSED THE GOVERNMENT TO TAKE ACTION TO BRING HOME THE SERIOUSNESS OF THIS MATTER TO THE UK GOVERNMENT. THE EFC IS OUR SECOND LARGEST MARKET AND WE CANNOT ALLOW DISCRIMINAT- LON TO CONTINUE AGAINST US THERE. THE EFFECT IS HIGHLY DAMAGING AND, IF IT CONTINUES, IT WILL ENCOURAGE OTHER DEVELOPED COUNTRIES TO TAKE SIMILAR ACTION AGAINST US. MR. CALLAGHAN'S SUPPORT FOR HONG KONG IS TIMELY AND I HOPE IT WILL BE EFFECTIVE".
LEN DUNNING, EXECUTIVE DIRECTOR,
TRADE DEVELOPMENT COUNCIL.
THE TRADE DEVELOPMENT COUNCIL IS VERY HEARTENED BY MR.CALLAGHAN 'S STATEMENT IN LUXEMBOURG. THE 7.D.C. HAS BEEN PRESSING FOR A REVIEW OF TRIS INIQUITOUS SITUATION WHERE WE ARE BEING DISCRIMINATED AGAINST IN OUR HOME COUNTRY. FRENCH EX-COLONIAL TERRITORIES HAVE BEEN WELL TREATED BY THE EEC AND, IN OUR VIEW, HONG KONG DESERVES NO LESS.
THE ACTION COMMITTEE ON EEC GSP CONVENED BY THE T.D.C. HAS EXPRESSED GREAT RELIEF AND PLEASURE AT THE NEWS OF BRITAIN'S SUPPORT FOR OUR INDUSTRY.
V.P.LEE, SECRETARY-GENERAL OF THE CMA.
MEMBERS OF THE CHINESE MANUFACTURERS' ASSOCIATION WILL BE VERY PLEASED WITH THIS NEWS. THE DISCRIMINATION AGAINST HONG KONG BY THE EEC HAS BEEN MOST UNREASONABLE AND IS INCREASINGLY DAMAGING TO OUR TRADE. THE C.M.A. HAS STRONGLY URGED THE HONGKONG GOVERNMENT SINCE 1971 TO TAKE ALL STEPS NECESSARY TO HAVE THE DISCRIMINATION REMOVED. MP. CALLAGHAN'S STATEMENT SUGGESTS THAT THE BRITISH GOVERNMENT WILL NOW NEGOTIATE A BETTER DEAL FOR HONG KONG.
MR. LEE WAS OPTIMISTIC BUT ALSO CAUTIOUS.
THIS NEGOTIATION
ILL NOT BE FASY AND WE MUST EXPECT STRONG RESISTANCE FROM FRANCE IN V PARTICULAR WITHIN THE EEC GROUP
M. J.B. KITE, EXECUTIVE DIRECTOR.
H.K. GENERAL CHAMBER OF COMMERCE
THE CHAMBER IS CELIGHTED TO HEAR MR. CALLAGHAN'S STATEMENT AND PARTICULARLY PLEASED THAT HE HAS REFERRED SPECIFICALLY TO THE REMOVAL OF DISCRIMINATION AGAINST HONG KONG.
THE CHAMBER HAS BEEN PRESSING FOR THIS KIND OF ACTION SINCE 1971 AND HAS LONG ADVOCATED DIRECT NEGOTIATIONS ON THE MATTER**
THE MON.T.K. ANN, SPEAKING FOR THE FEDERATION OF HONG KONG INDUSTRIES AND ALSO AS A TEXTILE INDUSTRIALIST. WELCOMED THE NEWS FROM LUXEMBOURG. MR. CALLAGHAN'S STATEMENT IS MOST OPPORTUNE, AND WILL SE VERY WELL RECEIVED IN HONGKONG, I AM DELIGHTED THAT THE BRITISH GOVERNMENT ILL CLEARLY NEGOTIATE A BUTTER DEAL FOR HONGKONG IN THE ETC. THE GRADUAL LOSS OF COMMONWEALTH PREFERENCE
AND THE APPLICATION OF A REVERSE PREFERENCE AGAINST OUR TEXTILES IN BRITAIN AND THE REST OF THE FFC IS ALREADY ADVERSELY AFFECTING THE TEXTILE INDUSTRY AND TRADE MR. ANN SAID, TH ANYTHING BRITAIN CAN DO TO REMOVE THE DISCRIMINATION AGAINST US IN EUROPE WILL DIRECTLY ASSIST OUR ECONOMY,
MC AND 1
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HONGAID LONDON SENT 027 FH
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