TNAG-0465-FCO40-530-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 61

Continuation Sheet No.

(CONTINUE TYPING HERE)

File No.

CONFIDENTIAL

INDUSTRIAL SECTOR

"Sensitive" Products and supercompetitive countries

7. We welcome the proposal to reduce the items

on the sensitive list from 51 to around 16 products

This will make the scheme more accessible for most

developing countries (though we doubt how much use

some countries will be able to make of their increased

opportunities in the short-term). But we are

unhappy about the proposal that there should be

special "butoirs" for the so-called supercompetitive

countries. This will affect Hong Kong in particular

and will reduce her relative trade opportunities.

However, we can reluctantly agree but will look

for a substantial improvement for Hong Kong

elsewhere.

HONG KONG

8. The Secretary of State may wish to make a

special statement on Hong Kong See Annex A7

FOOTWEAR FROM HONG KONG

9. (Also covered in the statement on Hong Kong.)

If there is résistance to including Hong Kong's

footwear in the scheme because of domestic footwear

problems7 We realise that the European footwear

industry is facing difficulties but so too is the

Hong Kong footwear industry. The proposals envisaged

are very modest. Domestic problems within Europe

stem essentially from imports from non-developing

CONFIDENTIAL

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