TNAG-0464-FCO40-529-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 92

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4. I spoke a moment ago of discrimination hardening.

This is not

only because it would go on for another year but also because

an increasing number of Hong Kong's competitors have been admitted to

GSP benefits. Since 1971 the Philipines, Thailand and Yugoslavia have all become beneficiaries and have thus improved their

competitive advantage over Hong Kong.

5. The situation in Hong Kong is of course well known to Governments

of Member States. Hong Kong Representatives have visited capitals

In the information

and have explained the major difficulties now experienced in the liong kong textile industry which is central to the territory's economy and

which relies upon exports for its existence.

conveyed to Member States authorities it was shown that llong Kong's

exports of textiles to the Community have fallen drastically since

1971 and continue to fall.

Discrimination has induced buyers to divert

their orders away from Hong Kong and to suppliers in countries which

benefit from the scheme.

6. In addition the Community has set an unfortunate example,

. followed by other donors including Canada in the scheme which it

introduced last July. It will be readily understood that Hong Kong

is hopelessly handicapped in seeking easement from these donors

if the latter can point out that the United kingdon itself does not

recognise Hong Kong's requirements.

7.

For all these reasons I an instructed to ask the Commission

to consider this question further and to projuse the inclusion of some

categories at least of Hong heng's textiles for the 1975 scheme re a

AGANSE first store towards the elimination of discrimination ong Kong's

THE BRITISH GOVERN, TERT

F

exports. 220 222 has further instructed re to add that hopes

that this matter will receive sympathetic to atment from other embod

States.