TNAG-0463-FCO40-528-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 34

thr. Hamma 1/55/

record 6

You

will have

t

Ukis

my bur

محبت کسا

لعميد

this

MEETING ON 5 JULY 1974 BETWEEN OFFICIALS OF THE FOREIGN AND

COMMONWEALTH OFFICE, THE DEPARTMENTS OF TRADE AND INDUSTRY

AND M. TRAN OF THE EEC COMMISSION

Present:

Mr J B Ingram, DoT (Chairman)

M. Tran, EEC Commission Mlle Sigrieste, EEC Commission Mr De Fonblanque, UK Rep

Brussels

Mr Roberts, DoT Mr Lodge, DoI Mr Leggatt, DoI Mr Goodfellow, FCO -

Miss Darrell, DoT (Secretary)

Care

Cello 22= √1-74

113

HONG KONG: GSP STATUS

After the introductory courtesies had been exchanged M. Tran explained his mandate from Commissioner Soames to seek a solution for Hong Kong's problem over her exclusion from preferential treatment on textiles in the EEC GSP. The recent UK statement on the Hong Kong problem in COREPER had provided a useful opportunity for developing the subject in the context of the GSP Scheme for 1975.

2. Mr Roberts outlined the background to the Permanent Representative's statement in COREPER by reference to his recent visit to Hong Kong, where he had encountered widespread concern about Hong Kong's benefits under the GSP. Principal among Hong Kong's problems was her need to maximize her export receipts in order to maintain the present standard of social welfare and to continue vital housing schemes. Other member states of the Community did not appear to appreciate the importance of export-intensive trade to Hong Kong's survival.

3. In the course of the discussion the Department of Trade reviewed the effect on Hong Kong in the textile and footwear sectors where she received no preferences. Her competitors in the developing world, in particular South Korea, had a trade advantage over her by being included on the list of GSP beneficiaries for textile preferences, and her traditional trade was being diverted to beneficiaries; however small a textile GSP quote night be, there was a tendency for importers, when exploring markets, to select exporters who could offer at least a certain amount of duty-free trade. Once quotas or ceilings were filled, importers would tend to continue trading with these contacts.

4. The Foreign and Commonwealth Office explained the constitutional

1