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5.
One useful point which Mr Tran made was that the technical experts of the member countries did not understand the Hong Kong problem. Mr Tran himself had made a visit to Hong Kong to study the difficulties and he thought it would be useful if some means could be devised to give the individual countries experts a teach-in either in Europe or preferably in Hong Kong. I said I was sure the Hong Kong Government would welcome this but clearly it would have to be done with discretion if it were going to achieve its object. I shall be letting Hong Kong know of this suggestion.
6.
Mr Tran introduced his actual proposals in respect of textiles by saying that it was not politically possible for removal of total discrimination in 1975. Mr Tran wished to know our reaction to his proposal that for non-cotton and non-sensitive textiles Hong Kong would be included on the same basis as other beneficiaries. It might also be possible to include a small quantity of unimportant, non-sensitive cotton textiles. In effect this would mean that on those items which had no quota restrictions there would be no restraint on Hong Kong's exports. For those items with quantitative restrictions, the Commission would devise some means of keeping an eye on the Community's imports, and there might have to be some buffer figure in respect of Hong Kong. Mr Tran emphasised that we must move slowly and that, in his view, this would be a basis which should get the agreement of the Six, since it would not affect their industry. also had merit for our own Department of Industry.
7.
It
I welcomed these suggestions, as did the Department of Trade, as being a very important step forward in principle in removing total discrimination on Hong Kong's textile exports under the GSP. It also had some worthwhile, even if limited, economic advantage.
8.
At this stage Mr Tran reiterated the Commission's intention to work for the complete removal of discrimination against Hong Kong's footwear exports from 1 January 1975.
9.
In respect of 1976, Mr Tran outlined his tentative views which would bring all textiles under one regime consistent with the GATT Multi-Fibre Textile Agreement. He was working towards some link between bilateral voluntary restraint agreements and benefits under the GSP, whereby those countries which agreed to limit their exports would benefit from larger GSP concessions. These proposals will need considerable refinement before they can be discussed seriously. they would appear to remove discrimination from Hong Kong and were welcomed in principle by the DOT and DOI.
However,
10.
We should not, I think, at this stage inform Hong Kong of these developments except perhaps to suggest that they should give thought to educating the textile experts of the member countries (see para. 5 above). The purpose of Mr Tran's visit was to give us a general tour d'horizon and to see whether his ideas were generally
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