TNAG-0465-FCO40-530-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 43

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HK-EBC/USP

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FM ROME 111000Z

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12 NOV 1974

HKK 6/598/1

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p.a.

TO PRIORITY FCO TELNO 624 OF 11/11/74 INFO ROUTINE THE HAGUE, UKREP BRUSSELS, HONG KONG (GOVERNOR).

YOUR TELNO.253 TO DUBLIN AND H

ONGK ONGTELNO 1121:

GENERALISED SCHEME TO PREFERENCES (GSP) FOOTWEAR PREFERENCE FOR HONG KONG.

1. COUNSELLOR ECONOMIC TOOK ACTION ON 8 NOVEMBER WITH HEAD OF DEPARTMENT CONCERNED IN MFA. PENNAROLA SAID THAT HE HAD RECENTLY DISCUSSED THE PROBLEM WITH MINISTRY OF FOREIGN TRADE AND THAT THERE WERE DIFFICULTIES, BECAUSE OF THE NEED TO PROTECT DOMESTIC INDUSTRY. HE THOUGHT ONE POSSIBLE SOLUTION MIGHT BE TO GIVE DIFFERENT TREATMENT BY MEANS OF SEPARATE TARIFF HEADINGS TO DIFFERENT KINDS OF FOOTWEAR, IN ORDER TO CONTINUE TO GIVE PROTECTION TO ITALIAN INDUSTRY'S SALES IN THE COMMUNITY.

2. IF THIS KIND OF SOLUTION WOULD HELP HONG KONG IT MIGHT BE

WORTH PURSUING IT WITH THE ITALIANS. BUT WE BELIEVE THAT WHEN DODGE WAS HERE EARLIER THIS YEAR PENNAROLA FLOATED IT, AND DODGE'S FIRST IMPRESSION WAS THAT IT WOULD NOT HELP.

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