TNAG-0465-FCO40-530-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 65

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TO PRIORITY FCO TEL NO 4962 OF 6 NOVEMBER,/ INFO PRIORITY DUBLIN GOVERNOR HONG KONG, INFO SAVING BRUSSELS (FOR DODGE).

MEETING OF WORKING GROUP ON GENERALISED PREFERENCES: 6 NOVEMBER.

1. THE PURPOSE OF THIS MEETING WAS TO CLEAN UP THE TEXTS: AND ALL (APART FROM THE TOBACCO REGULATION) WERE REVIEWED. THE CHAIRMAN FIRM-

LY STEERED THE MEETING AWAY FROM DISCUSSION OF THE OUTSTANDING POINTS OF SUBSTANCE WHICH HAD BEEN SUBMITTED TO THE COMMITTEE OF

, PERMANENT REPRESENTATIVES AND WOULD BE DISCUSSED BY THE COUNCIL NEXT

WEEK.

2.

THERE WAS SOME DISCUSSION ON THE COMMISSION'S COMPROMISE ON THE

SENSITIVE LIST. AN AMENDMENT TO THE DRAFT TEXT MAKES IT CLEAR THAT

MEMBER STATES WILL BE ABLE TO OPT OUT OF THE PROVISION FOR REIMPOS-

ITION OF DUTIES BY MEMBER STATES WHEN 50% OF A SPECIAL BUTOIR IS USED IN ONE MEMBER STATE. FOR THOSE WHO DO NOT OPT OUT IN ADVANCE THE

REIMPOSITION WILL BE MANDATORY.

3. THE GERMANS, DUTCH AND BELGIANS STRONGLY OPPOSED THE COMMISSION'S

PROPOSAL TO INTRODUCE A COMMUNITY RESERVE FOR 5 OF THE PRODUCTS. REMAINING ON THE SENSITIVE LIST. THE COMMISSION MADE LITTLE HEADWAY PROPOSALS FOR AN ALTERNATIVE COMPROMISE AND, WHILE NOT FINALLY ADMITTING DEFEAT, APPEAR TO BE PREPARED TO ACCEPT THAT THERE WILL BE

NO COMMUNITY RESERVE.

4. TRAN (COMMISSION) STRONGLY URGED THE CASE FOR ACCEPTANCE, PARTICULARLY BY THE IRISH, OF THE COMMISSION PROPOSALS FOR INCLUDING HONG KONG AS A BENEFICIARY OF GSP FOR FOOTWEAR. HE POINTED OUT THAT THE IRISH SHARE OF THE QUOTA WAS ONLY 1% AND THAT THEY WOULD NOT IN ANY CASE HAVE TO APPLY PREFERENCES IN 1975 IN VIEW OF THEIR DERROGAT-

ION UNDER THE TREATY OF ACCESSION. THE IRISH, HOWEVER, FIRMLY MAINTA INED THEIR POSITION. IT WAS POLITICALLY IMPOSSIBLE FOR THEM TO AGREE TO ANY CONCESSION ON FOOTWEAR IN THE PRESENT STATE OF THEIR INDUSTRY. IF HONG KONG WAS INCLUDED IN 1975 IT WOULD BE IMPOSSIBLE

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