TNAG-0750-FCO40-954-Visits-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-UK-1978 — Page 79

CONFIDENTIAL

3. There is however a complication.

A

number of EEC members, notably the Germans, have questioned the whole principle of extending GSP to "super competitive"

producers like Hong Kong. The DOT Ministers have some sympathy with this attitude.

It

is likely therefore that when the discrimina- tion against Hong Kong is finally removed, the change will be accompanied by an adjust-

ment to the GSP so that the preferences

extended to countries like Hong Kong are not as great as those extended to the really poor countries. But at least Hong Kong will be treated in the same way as her major

competitors.

CONFIDENTIAL