TNAG-0463-FCO40-528-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 40

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Your Government will be aware that on 14 June the

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PA GECGSP

Government of Hong Kong presented a Memorandum to the EEC

Commission in Brussels, copies of which have, I am informed,

been forwarded by the Commission to your Government.

For

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ease of reference, I have here a copy for your retention.

2. As you will recall, during the UK entry negotiations,

instead of associate status for Hong Kong, which was not

acceptable to the EEC, the Community offered, and HMG accep-

ted, to settle definitively the case of Hong Kong in the

context of these negotiations by including Hong Kong as a

beneficiary in the EEC system of generalised preferences,

except in respect of textiles and footwear. Thus, Hong

Kong's inclusion in the EEC GSP has a unique element, in that

it represents not a gift as with other beneficiaries but a

negotiated settlement within the accession agreement. ΤΟ

a degree, therefore, the EEC has a contractual obligation

towards Hong Kong in this regard.

}

3. At the time this settlement was reached, HMG drew atten-

tion to its desire to see discrimination against Hong Kong

removed. In November 1973 HMG made clear its view that

discrimination against Hong Kong was no longer acceptable.

This position was restated by Mr Callaghan on 4th June 1974.

4. Your Government will also be aware of the statement made

by the UK Permanent Representative to the Communities

Sir Michael Palliser, in Brussels on 27 June in the Committee

of Permanent Representatives."

Sir Michael's actual words were:

11

In accordance with instructions received from the

British Government I should like to make a short state-

ment about Generalised Preferences for Hong Kong.