TNAG-0465-FCO40-530-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 74

NOTHING TO BE WRITTEN IN THIS MARGIN

but

(e) we are seeking longer quotas fu the UK on tobacco and plywood than have buin prepessed by the Ammission.

but, because of string italian resistance, we shall almost certainly have to compromise of custit cil,

CONFIDENTIAL

(b) we have supported the Commission's proposals

for drastically cutting the sensitive list as the

minimum improvement which should be made in this area;

(c) we have opposed the new suggestions for the

super competitives;

(a) we have sought a further improvement for the

position of Hong Kong,

ATTITUDE OF OTHER MEMBER STATES

19. While we have been supported by Denmark and

in pressing in substantive improvements) Germany in particulary most other countries have been

strongly critical of the liberal elements in the

Commission's proposals.

In the main this reflects

a simple protectionist objection to low cost imports.

In part there is also a feeling that the EEC should

limit the improvements it makes in the GSP now in

order to have something to meet the demands which

developing countries will make for concessions in the

GATT multilateral trade negotiations.

20. We must ensure that coverage in the agricultural

sector for 1975 marks a considerable step forward

particularly with regard to the interests of the JDI

countries We must also secure a significant reduction

in the items on the sensitive list. We shall probably

have to accept the new arrangements for the super

EFFECT competitives but attention should be drawn to the offee

this will have on Hong Kong.

21. We must press Hong Kong's case very hard in the

Council largely for presentational reasons within Hong

Kong. It would be useful if the statement at Annex A

could be made. But significant progress is unlikely.

6196 D073528 200M 2/74 Cr.P.C. 839/3

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