TNAG-0465-FCO40-530-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 77

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that the Commission did not propose the inclusion of

any of Hong Kong's textile exports in the scheme for

1975. Sir M Palliser in his statement to COREPER on

10 October drew attention to this and asked the

Commission to consider the matter further with a view

to proposing the inclusion of some categories at least

of Hong Kong's textiles for the 1975 scheme as a first

stage towards the elimination of discrimination against

Hong Kong in this sector. I am very disappointed that

revised proposals have not been made.

6. The situation is becoming increasingly difficult

for Hong Kong. Since the Community's scheme was first

introduced in 1971 an increasing number of Hong Kong's

competitors have been admitted to GSP benefits for

textiles and the effect of this discrimination has been

that buyers have diverted their orders away from Hong

Kong to suppliers in countries which benefit from the

scheme. Textiles represent a very important element

in Hong Kong's economy.

7. I hope that even at this late stage the Community

will agree that further consideration be given to

including some of Hong Kong's textiles in the scheme for this year and that, as the Commission have suggested,

a major effort be made during next year's review towards

making really significant progress on ending the

discrimination against Hong Kong in this sector.

8. There is one final point: the proposal to introduce

special arrangements for the so-called super competitive

countries will hit Hong Kong especially hard and if they

are agreed it will mean yet a further element of

discrimination against Hong Kong, If further discrimination

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