TNAG-0463-FCO40-528-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 143

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TO IMMEDIATE UKREP BRUSSELS TÉLNO 477 OF 23 MAY/INFO UKMISSION GENEVA INFO SAVING TO OTHER EEC POSTS.

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YOUR TELEGRAM NO 2310: GENERALISED SCHEME OF PREFERENCES (GSP).

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1. WE AGREE THAT IT WOULD BE APPROPRIATE FOR YOU TO MAKE AN

APPROACH AT COMMISSIONER LEVEL ON THE GSP. WE LEAVE YOU TO DECIDE WHO

BEST TO SPEAK TO, BUT WE FEEL THAT IT WOULD BE WORTH RAISING THE

SUBJECT WITH BOTH ORTOLI AND SOAMES.

•

2. YOU SHOULD SAY THAT, IN THE CONTEXT OF RENEGOTIATION, THE

GOVERNMENT ATTACH SPECIAL IMPORTANCE TO SECURING SEPIOUS

IMPROVEMENTS UNDER THE GSP, BOTH IN THE STRUCTURE AND COVERAGE OF

THE SCHEME. THIS WOULD BE A MEANS OF HELPING THOSE DEVELOPING COUNTRIES, ESPECIALLY THOSE COVERED BY THE JOINT DECLARATION OF

INTENT, FOR WHOM ASSOCIATION IS NOT AVAILABLE. FOR THIS PURPOSE YOU SHOULD DRAW, ON PARAGRAPH 2 OF MY TELEGRAM NO 451. YOU SHOULD ALSO COMMENT ON THE DISCUSSION ON 17 MAY (YOUR TELEGRAM NO 2349) ABOUT THE COMMISSION'S IDEAS, OTHER THAN TEXTILES, IN THE INDUSTRIAL SECTOR, WE ARE UNHAPPY WITH THE PROPOSALS FOR SPECIAL BUTOIRS FOR THE MOST

COMPETITIVE COUNTRIES. WE AGREE THAT SOMETHING NEEDS TO BE DONE FOR THE POOREST COUNTRIES, BUT THIS DOES NOT HAVE TO BE AT THE EXPENSE OF THE MOST COMPETITIVE. THERE IS LITTLE EVIDENCE TO SUGGEST THAT

IT IS THE LATTER WHO ARE PREVENTING THE POORER COUNTRIES FROM USING

THE GSP TO GREATER ADVANTAGE. IN OUR VIEW THE BEST WAY TO PROCEED WOULD BE TO EXCLUDE THE POOREST COUNTRIES FROM BUTOIR AND QUOTA RESTRICTIONS ALTOGETHER. YOU SHOULD ALSO SAY THAT WE DO NOT LIKE

THE WAY THINKING IS DEVELOPING ON HONG KONG. SINCE WE ALIGNED TO

THE COMMUNITY'S GSP WE HAVE BEEN OBLIGED TO DISCRIMINATE AGAINST

HONG KONG'S TEXTILES AND FOOTWEAR EXPORTS IN FAVOUR OF HER

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