TNAG-0464-FCO40-529-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 120

GPS

PRIORITY

1808

CYPHER CAT A

FM BRUSSELS 07/1035Z

CONFIDENTIAL

CONFIDENTIAL

R

N 52

- 8 OCT 1974

TO PRIORITY HONG KONG TEL NO 61 OF 7 OCTOBER 1974 INFO FCO, HONG KONG GOVERNMENT OFFICE LONDON (FOR KIDD), UKMIS GENEVA. SAVING TO UKREP BRUSSELS.

FROM DODGE

EEC: CSP

1. MY MEMORANDUM 0.239 (NOT TO ALL).

2.

TRAI (EEC COMMISSION) HAS ADVISED ME THAT: A) OUR RECENT REPRESENTATIONAL LXERCISE IN THE CEC CAPITALS HELPED OUR CAUSE, DUT

B) THE SITUATION IS VERY BAD FOR HONG KONG BECAUSE THE EIGHT OTHER MEMBER STATES NOW HAVE SERIOUS DOUBTS ABOUT FRITAIN'S CONTINUING MEMBERSHIP AND, AS A DIRECT

RESULT OF THIS,

C) NOTHING CAN BE CONCEDED TO HONG KONG IN TEXTILES FOR 1975 (1.E. NOT EVEN ON NON-SENSITIVE NON-COTTON ITES AS HE HAD ONCE HOPED) SINCE HONG KONG MAY SOON HAVE TO BE TREATED BY THE EEC SIMPLY AS THE DEPENDENCY OF AN EX-MEMBER STATE. (AN ADDITIONAL SPECIOUS COUNTER- ARGUMENT IS THAT WITH HONG KONG AS A BENEFICIARY THESE ITEMS WOULD SOON BECOME SENSITIVE). THE 1975 CSP TEXTILES POSTION IS THUS INTENDED BY THE COMMISSION TO BE STATUS QUO (UNDERLINER) PLUS 59, WITH MERELY MINOR VARIATIONS IN BUTOIRS (UNDERLINED) FOR A FEW BENEFICIARIES LIKE SRI LANKA AND SOUTH VIETNAN:

D) ON FOOTWEAR: QUOTE NOT ALL THE MEMBER STATES ARE ABLE TO GO ALONG WITH THE COMMISSION PROPOSALS COMPLETELY,

TRAN CONCE DE D THERE MAY HAVE TO BE ADJUSTMENTO UNQUOTE,

CONFIDENTIAL

/ THAT

Enti 147

The

Page 120Page 121