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5.
The then Government judged that there was no chance of persuading the Community to eliminate discrimination against Hong Kong before we had even aligned with the scheme. Mr Davies therefore announced on 6 November 1973 that we had examined this matter carefully and had concluded that in present circumstances it was no longer acceptable for discrimination to apply against Hong Kong. This undertaking was echoed by Mr Callaghan on 4 June this year when he said in Brussels that "we need substantial improvements in the position of Hong Kong, where at present the UK has to discriminate against one of its own
territories".
6.
We are now coming up to the final round of discussions on the Community's GSP for 1975, and Mr Jordan has come here to ask what HMG is doing to fulfil its undertaking to seek substantial progress in eliminating discrimination against Hong Kong. At the meeting with Mr Preston he made the point that there are both substantive and presentational aspects to this question. Hong Kong will look for concrete progress, but to the extent that the optimum of full admission to the GSP for textiles and footwear is not achieved, it will be necessary for both the UK and Hong Kong Governments to present what can be done in the best possible light. The second is a genuine personal aim of Mr Jordan. He has in the past done more than most other Hong Kong Civil Servants to explain the policies of HMG to Hong Kong in such a way as to promote harmony and minimise friction.
7. On substance, the Department of Trade have been able to give him little comfort. It is likely that Hong Kong will be admitted to most of the Community's footwear GSP. There is almost certain to be no progress on textiles this year. In addition the Community
are likely to adopt a super-competitive concept which will mean that, even where Hong Kong does already benefit from the GSP, that benefit will be restricted.
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18.
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