TNAG-0463-FCO40-528-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 152

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GENERALISED SCHEME OF PREFERENCES

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DENMAN AND INGRAM (DEPARTMENT OF TRADE) OUTLINED IN BRUSSELS ON MAY 16 TO A COMMISSION TEAM HEADED BY ERNST AND INCLUDING CECCHINI MALTZAHN AND TRAN OUR THINKING ON THE PROPOSALS WHICH WE WOULD HAVE IN MIND TO MAKE IN LUXEMBOURG ON JUNE 4 ON THE QUOTE SERIOUS IMPROVEMENT OF THE COMMUNITY'S GENERALISED PREFERENCE SCHEME UNQUOTE MENTIONED IN MY STATEMENT OF 1 APRIL IN LUXEMBOURG ON RENEGOTIATION. 2. WE EXPLAINED THAT WE WERE NOT PRESENTING SOME CUT AND DRIED PROPOSALS BUT THE MAIN ELEMENTS IN OUR THINKING WERE THESE. UNITED KINGDOM MINISTERS ATTACHED A HIGH PRIORITY TO IMPROVING CONDITIONS OF ACCESS TO THE ENLARGED COMMUNITY FOR THE PRODUCTS OF DEVELOPING COUNTRIES. AND AGAINST THIS BACKGROUND IT DID NOT SEEM TO US THAT THE EXTENSIVE RANGE OF RESTRICTIONS BOTH AS REGARDS PRODUCTS AND INDIVIDUAL COUNTRIES APPLIED TO SENSITIVE PRODUCTS IN THE EEC GENERALISED PREFERENCE SCHEME WAS COMPATIBLE EITHER WITH THIS APPROACH OR WITH THE URGENT NEED NOW IN THE LIGHT OF THE CRIPPLING COST OF OIL IMPORTS FOR A BETTER DEAL FOR THE DEVELOPING COUNTRIES. WE APPRECIATED THAT IT WAS NOT PRACTICABLE TO EXPECT THESE RESTRICTIONS TO BE SWEPT AWAY OVERNIGHT BUT IN OUR VIEW THEY SHOULD BE ABOLISHED OVER A TRANSITIONAL PERIOD OF PERHAPS THREE YEARS, THERE WOULD ADMITTEDLY HAVE TO BE SAFEGUARDS, PERHAPS A GENERAL SAFEGUARD WHICH THE COMMISSION COULD OPERATE IN CASES OF REAL MATERIAL INJURY IN MEMBER STATES AND POSSIBLE PARTICULAR SAFEGUARDS FOR A FEW HIGHLY SENSITIVE PRODUCTS. IN ADDITION THE RANGE OF PRODUCTS COVERED BY THE SCHEME WOULD NEED TO BE SUBSTANTIALLY WIDENED PARTICULARLY IN THE PROCESSED AGRICULTURAL GOODS CATEGORY, AND IN ALL THIS WE DID NOT CONSIDER THAT THE INTERESTS OF THE ASSOCIATES WHOM NATURALLY THE COMMUNITY HAD TO TAKE INTO ACCOUNT

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