TNAG-0463-FCO40-528-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 149

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- 6 JUN 1974

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TO ROUTINE FCO TELEGRAM NO. 2309 OF 18 MAY/INFO UKMIS GENEVA INFO SAVING EEC POSTS,

MEETING ON GENERALISED PREFERENCES: 17 FiY,

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1. THIS WAS THE SECOND AND FINAL DISCUSSION ON THE COMMISSION'S IDEAS FOR REFORM OF THE SYSTEN FOR INDUSTRIAL PRODUCTS OTHER THAN TEXTILES, BEFORE THE COMMISSION SUMMITS TO THE COUNCIL ON 19 JUNE A FORMAL PROPOSAL FOR CENERALISED PREFERENCES IN 1975. THERE WERE A NUMBER OF RESERVATIONS, INCLUDING OUR OWN, BUT ALSO A BROAD MEASURE OF AGREEMENT ON THE FUNDAMENTALS OF THE COMMISSION'S.-

DEAS, LE. A FREEZING OF MAXIMUM AMOUNTS FOR THE MOST COMPETITIVE COUNTRIES FOR PARTICULAR PRODUCTS; AND A REDUCTION IN THE SCOPE OF THE SENSITIVE LIST. THE COMMISSION HAS NOW ABANDONED THE IDEA OF ABOLISHING THIS LIST AND IT IS CLEAR THAT THERE WILL BE A RESIDUAL SENSITIVE LIST CONTAINING A SIGNIFICANT NUMBER OF PRODUCTS SUBJECT TO NATIONAL QUOTAS.

2. INTRODUCING THEIR SUCCESTIONS, THE COMMISSION MADE IT CLEAR THAT HEY WOULD INSTITUTE A STRICT SYSTEM OF SURVEILLANCE FOR THE QUOTE SPECIAL BUTOIRS QUOTE (1.E. THE MAXIMUM AMOUNTS FOR THE HIGHLY COMPETITIVE) TO ENSURE THAT QUTIES WOULD BE RE-IMPOSED QUICKLY AND AUTOMATICALLY WHEN THE MAXIMUM AMOUNTS WERE REACHED. THE ITALIANS AND BELGIANS PARTICULARLY STRESSED THE NEED FOR EFFECTIVE RESTRICTIONS, THE DUTCH WERE IN FAVOUR OF AN EVEN STRICTER SYSTEM THAN THAT PROPOCED BY THE COMMISSION FOR DEALING WITH HIGHLY COMPETITIVE SUPPLIERS, THEY CONSIDERED THAT THE COMMITSSTONG PROPOSALS WOULD NOT PROVIDE SUFFICIENT PROTECTION TO ENABLE MEMBER

STATES LIKE ITALY AND FRANCE WO SAY THEY HAVE PROBLEMS WITH IMPORTS FROM THE HIGHLY COMPETITIVE COUNTRIES TO ACCEPT THE KIND OF LIBERALISATION OF THE SCHEME IN THE INTEREST OF THE LESS DEVELOPED WHICH THE DUTCH THEMSELVES STRONGLY SUPPORT. WE SAID THAT OUR AIM WAS TO ACHIEVE A FAR REACHING LIBERALISATION OF THE SCHEME: VE DID NOT THINK THAT A SYSTCH OF RESTRICTIONS ON THE HOST COMPETITIVE

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