GRS 600A
IMMEDIATE
CYPHER CAT A
RESTRICTED
IN
A No. 51
12 NOV 1974
Entu
188
HK-ZEC/iSP.
Р
FM FCO 071730Z
1281
RE:
1186
1 HKK 6/598/1
RESTRICTED
194 (193)
190
In ki
FRAME FILES
/1974
TO IMMEDIATE DUBLIN TELNO 253 OF 7 NOVEMBER AND TO ROME THE HAGUE
INFO UKREP BRUSSELS GOVERNOR HONG KONG.
UKREP BRUSSELS TELEGRAM NO 4963: GENERALISED SCHEME OF PREFERENCES (GSP): FOOTWEAR PREFERENCES FOR HONG KONG,
1. THE COUNCIL OF MINISTERS WILL DISCUSS THE COMMUNITY'S GSP FOR 1975
ON 12 NOVEMBER. AS YOU KNOW, THE INCLUSION OF HONG KONG AS A
BENEFICIARY FOR FOOTWEAR IS A MATTER OF GREAT IMPORTANCE TO US. MOST
MEMBER STATES CAN ACCEPT THE COMMISSION'S PROPOSALS, BUT THE IRISH
ARE OPPOSED AND ARE PROVIDING COVER FOR ITALIAN AND DUTCH RESERVAT-
IONS.
2. HONG KONG, AS A DEPENDENT TERRITORY, IS EXCLUDED FROM PREFERENCES
ON TEXTILES AND FOOTWEAR. ENDING THIS DISCRIMINATION AND GIVING
HONG KONG EQUAL TERMS OF ACCESS WITH HER COMPETITORS IS A RENEGOT-
IATION OBJECTIVE.
3. THE IRISH OBJECT TO THE COMMISSION PROPOSAL BECAUSE OF THE
DEPRESSED STATE OF THEIR DOMESTIC FOOTWEAR INDUSTRY AND POTENTIAL
DAMAGE FROM IMPORTS FROM HONG KONG. THEY ARE AFRAID MAINLY FOR 1976
AND BEYOND SINCE IN 1975 THEIR DEROGATION FROM APPLYING THE FULL
FOOTWEAR GSP IN ARTICLE 23 OF THE TREATY OF ACCESSION WILL CONTINUE.
(THEIR GSP RATE FOR FOOTWEAR IS THE SAME AS THE TRANSITTING RATE THEY APPLY TO OTHER MEMBER STATES).
4. PLEASE APPROACH THE IRISH AUTHORITIES AT A HIGH LEVEL, FOR DUBLIN.
YOU SHOULD STRESS THE GREAT IMPORTANCE WE ATTACH TO SECURING
HONG KONG'S INCLUSION AS A BENEFICIARY ON FOOTWEAR. UNLESS THIS
IS ACCEPTED BY THE REST OF THE COMMUNITY, IT WILL BE DIFFICULT FOR
THE UK TO ACCEPT THE COMMISSION'S PROPOSALS FOR THE INDUSTRIAL
SIDE OF GSP AS A WHOLE. SO FAR, WE SUPPORT THESE AS BEING A
VALUABLE STEP IN IMPROVING THE SCHEME FOR THE MAJORITY OF
DEVELOPING COUNTRIES. THEY CONTAIN HOWEVER SOME ADVERSE ELEMENTS
FOR HONG KONG WHICH WILL HAVE TO BE OFFSET BY BENEFITS FLSEWHERE
JE FOOTWEAR..
RESTRICTED
/5.
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