TNAG-0465-FCO40-530-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 76

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

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CONFIDENTIAL

ANNEX A

X

STATEMENT ON HONG KONG

1.

I should like to make a statement on the question

of discrimination against Hong Kong in the Community's

GSP.

2.

A year ago the then Chancellor of the Duchy of

Lancaster said in the Council that it was not acceptable

that there should be continuing discrimination against

Hong Kong in the GSP and that in the context of this

year's review we intended to press resolutely for the

inclusion of Hong Kong's textiles and footwear in the

scheme from 1975 onwards.

3.

I [Mr Callaghan] also referred to Hong Kong in

my [his] statement to the Council on 4 June when I [he]

said that we needed substantial improvements in the

position of Hong Kong where at present the UK has to

discriminate against one of its own territories.

Sir Michael Palliser has also made statements on Hong

Kong from time to time in the Committee of Fermanent

Representatives the last of these on 10 October.

4.

I welcome the Commission's proposal to bring Hong

Kong's footwear exports into the scheme thereby ending

this part of the discrimination. I hope other member

states will agree to this. The Hong Kong footwear

industry is facing serious difficulties and it is

important that this proposal be endorsed.

5. But this is only scratching the surface of the

problem. The inclusion of Hong Kong's footwear, though

welcome, will only assist a relatively small sector in

the Colony. Really substantial improvement will only

come if Hong Kong's textiles are also brought into the

ambit of the scheme. We were extremely disappointed

/that

CONFIDENTIAL