TNAG-0465-FCO40-530-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 48

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6. THE SITUATION IS BECOMING INCREASINGLY DIFFICULT FOR HONG KONG.

SINCE THE COMPUNITY'S SCHEME WAS FIRST INTRODUCED IN 1971 AN

INCREASING NUMBER OF HONG KONG'S COMPETITORS HAVE BEEN ADMITTED TO G S P BENEFITS FOR TEXTILES AND THE EFFECT OF THIS DISCRIMINATION

HAS BEEN THAT BUYERS HAVE DIVERTED THEIR ORDERS AWAY FROM HONG

KONG TO SUPPLIERS IN COUNTRIES WHICH BENEFIT FROM THE SCHEME.

TEXTILES REPRESENT A VERY IMPORTANT ELEMENT IN HONG KONG'S ECONOMY.

7. I HOPE THAT EVEN AT THIS LATE STATE THE COMMUNITY WILL AGREE THAT FURTHER CONSIDERATION BE GIVEN TO INCLUDING SOME OF HONG KONG'S

TEXTILES IN THE SCHEME FOR THIS YEAR AND THAT, AS THE COMMISSION HAVE SUGGESTED, A MAJOR EFFORT BE MADE DURING NEXT YEAR'S REVIEW TO-

WAPDS MAKING REALLY SIGNIFICANT PROGRESS ON ENDING THE DISCRIMINA-

TION AGAMIST HONG KONG IN THIS SECTOR.

3. THERE IS. ONE FINAL POINT: THE PROPOSAL TO INTRODUCE SPECIAL

ARRANGEMENTS FOR THE SO-CALLED SUPER-COMPETITIVE COUNTRIES WILL HIT

HONG KONG ESPECIALLY HARD, IF IT IS ADOPTED IT WILL ADD FURTHER TO HONG KONG'S DIFFICULTIES, IF FURTHER DISCRIMINATION OF THIS KIND

IS TO BE ACCEPTED THIS ADDS CONSIDERABLE WEIGHT TO THE ARGUMENT THAT

HONG KONG SHOULD RECEIVE COMPENSATING BENEFITS NOT ONLY ON FOOTWEAR

BUT ALSO ON TEXTILES.

2.ENDS.

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