TNAG-0465-FCO40-530-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 47

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AND G S P.

TO PRIORITY HONG KONG TELUC 971 OF 8 NOVEMBER/19FO UK?EP BRUSSELS

MY IMEDIATELY PRECEDING TELEGRAM: HONG KONG

FOLLOWING IS TEXT, BEGINS

1. I SHOULD LIKE TO MAKE A STATEMENT ON THE QUESTION. OF DISCRIM-

INATION AGAINST HONG KONG IN THE COMMUNITY'S G S P.

2. A YEAR AGO THE THEN CHANCELLOR OF THE DUCHY OF LANCASTER SAID

HI THE COUNCIL THAT IT WAS NOT ACCEPTABLE THAT THERE SHOULD BE

CONTINUING DISCRIMINATION AGAINST HONG KONG IN THE G S P AND THAT IN

THE CONTEXT OF THIS YEAR'S REVIEW WE INTENDED TO PRESS PESOLUTELY

FOR THE INCLUSION OF HONG KONG'S TEXTILES AND FOOTWAR IN THE

SCHEME FROM 1975 ONWARDS.

3. 1 (MR. CALLAGHAN) ALSO REFERRED TO HONG KONG IN MY (HIC) STATEMENT TO THE COUNCIL ON 4 JUNE WHEN I (HE) SAID THAT VE NEEDED

SUBSTANTIAL IMPROVEMENTS IN THE POSITION OF HONG KONG MATRE AT

FRESENT THE UNITED KINGDOM HAS TO DISCRIMINATE AGAINST ONE OF ITS

OWN TERRITORIES. SIR MICHAEL PALLISER HAS ALSO MADE STATEMENTS 04

HONG KONG FROM TIME TO TIME IN THE COMMITTER OF PERMANENT

REPRESENTATIVES - THE LAST OF THESE ON 13 OCTOBER.

I

4. 1 WELCOME THE COMMISSION'S PROPOSAL TO BRING HOPG KONG'S

FOOTWEAR EXPORTS INTO THE SCHEME THEREBY THDING THIS PART OF THE

DISCRIMINATION, EARNESTLY HOPE OTHER MEMBER STATES WILL AGREE

TO THIS. THE HONG KONG FOOTWEAR INDUSTRY IS FACING SERIOUS

TIFFICULTIES AND IT IS IMPORTANT THAT THIS PROPOSAL BI ENDORSED, 5. BUT THE INCLUSION OF HONG KONG'S FOOTAR, THOUGH WELCOME,

WILL ONLY ASSIST A RELATIVELY SMALL SECTOR IN THE COLONY. REALLY

SUBSTANTIAL IMPROVEMENT WILL ONLY COME IF HONG KONG'S TEXTILES ARE

ALSO BROUGHT INTO THE AMBIT OF THE SCHEM, WE ARE EXTREMELY

DISAPPOINTED THAT THE COMMISSION DID NOT PROPOSE THE INCLUSION OF

ANY OF HONG KONG'S TEXTILS EXPORTS IN THE SCHEME FOR 1975. SIR M.

PALLISER IN HIS STATEMENT TO COREPER ON 12 OCTOBER DREV ATTENTION

TO THIS AND ASKED THE COMMISSION TO CONSIDER THE MATTER FURTHER WITH

A VIEW TO PROPOSING THE PCLUSION OF SUOMI CATEGORIES AT LEAST OF

HONG KONG'S TEXTILES FOR THE 1975 SCHEME AS A FIRST STAGE TOYARDS

THE FLIMITATION OF DISCRIMINATION AGAINST PONG KONG IN THIS SECTOR,

LAR VERY DISAPPOINTED THAT REVISED PROPOSALS HAVE NOT BEEN MIDE. 16.

CONFIDENTIAL